0	Initial Investment	$20,000	$18,000
1	Income	$10,000	$11,000
2	Income	$10,000	$7,000
3	Income	$10,000	$10,000

At 10 % discount rate, the firm should accept Select one: a. M b. N c. both d. Neither

IRR for N is ______ 10%. Select one: a. higher than b. lower than c. equal to

What is the NPV of project N? The firms cost of capital is 10 percent. Select one:

a. $4,000

b. $5,298

c. $2,900

d. $28,000

What is the payback period of M?

Select one:

a. 2 years

b. 3 years

c. 0 years