A company is analyzing two projects, M and N, with the following initial investment and cash flows:

• Initial Investment: $70,000
• Project M:
  • Year 1: $30,000
  • Year 2: $25,000
  • Year 3: $20,000
  • Year 4: $15,000
• Project N:
  • Year 1: $25,000
  • Year 2: $30,000
  • Year 3: $20,000
  • Year 4: $15,000

Requirements:

1. Compute the NPV of each project using an 8% discount rate.
2. Determine the IRR for each project.
3. Calculate the profitability index for each project.
4. Assess which project should be undertaken if they are mutually exclusive.