To create the virtual machines:
1. Select the Hyper-V Manager from the Start menu.
2. On the Actions pane (right side of the window), click on the New > Virtual Machine link.
3. The "Before You Begin" window will appear. Click on the Next button.
4. The "Specify Name and Location" window will appear. Enter "VM1" as the name and select D:\HYPERV as the location. Click on the Next button.
5. The "Specify Generation" window will appear. Select Generation 1 and click on the Next button.
6. The "Assign Memory" window will appear. Enter 1024 MB and uncheck the box next to "Use Dynamic Memory for this virtual machine". Click on the Next button.
7. The "Configure Networking" window will appear. Select the "External" option and click on the Next button.
8. The "Connect Virtual Hard Disk" window will appear. Select the "Create a virtual hard disk" option, enter "VM1.vhdx" as the name, and select D:\HYPERV\Virtual Hard Disks as the location. Enter "50 GB" as the size and click on the Next button.
9. The "Installation Options" window will appear. Select "Install an operating system from a bootable CD/DVD-ROM" and click on the Next button.
10. The "Summary" window will appear. Review the settings and click on the Finish button.
11. On the Actions pane (right side of the window), click on the New > Virtual Machine link again.
12. The "Before You Begin" window will appear. Click on the Next button.
13. The "Specify Name and Location" window will appear. Enter "VM2" as the name and select D:\HYPERV as the location. Click on the Next button.
14. The "Specify Generation" window will appear. Select Generation 2 and click on the Next button.
15. The "Assign Memory" window will appear. Enter 2048 MB and check the box next to "Use Dynamic Memory for this virtual machine". Click on the Next button.
16. The "Configure Networking" window will appear. Select the "Internal" option and click on the Next button.
17. The "Connect Virtual Hard Disk" window will appear. Select the "Create a virtual hard disk" option, enter "VM2.vhdx" as the name, and select D:\HYPERV\Virtual Hard Disks as the location. Enter "250 GB" as the size and click on the Next button.
18. The "Dynamic Memory" window will appear. Enter "512 MB" as the minimum RAM and "4096 MB" as the maximum RAM and click on the Next button.
19. The "Installation Options" window will appear. Select "Install an operating system from a bootable CD/DVD-ROM" and click on the Next button.
20. The "Summary" window will appear. Review the settings and click on the Finish button.
The two virtual machines, VM1 and VM2, have been successfully created.