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3 ) show me steps using financial calculator: Tangshan Mining Company is considering investment in one of two mutually exclusive projects M and N which

3) show me steps using financial calculator:
Tangshan Mining Company is considering investment in one
of two mutually exclusive projects M and N which are described
below. Tangshan Mining's overall cost of capital is 15 percent,
the expected market return is 15 percent, and the risk-free rate is
5 percent. Tangshan estimates that the beta for project M is 1.20
and the beta for project N is 1.40.
a) Using the risk-adjusted discount rate method of project
evaluation, the NPV for Project M is
A) $156,494
B) $122,970
C) $85,732
D) $500,000
(b) Using the risk-adjusted discount rate method of project
evaluation, the NPV for Project N is
A) $166,132
B) $122,970
C) $85,732
D) $600,000
(c) Using the risk-adjusted discount rate method of project
evaluation, the better investment for Tangshan Mining is
(See Table 12.3)
A) Project M because it has a higher NPV
B) Project N because it has a higher NPV
C) Project N because it has a higher IRR
D) Project M because it has a higher IRR
(d) Which project would be preferable if both projects' betas
were equal to 1.0???(See Table 12.3)
A) Project M because it has a higher NPV
B) Project N because it has a higher NPV
C) Project N because it has a higher IRR
D) Project M because it has a higher IRR
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