A firm is considering two investment options, M and N:

Year	Project M Cash Flow ($)	Project N Cash Flow ($)
0	-30,000	-40,000
1	10,000	12,000
2	15,000	16,000
3	20,000	22,000
4	25,000	28,000
IRR	15%	17%

The discount rate is 8%.

a) Calculate the NPV for each project. b) Determine which project provides a higher return. c) Analyze the significance of IRR in capital budgeting. d) Discuss how risk factors might alter the investment decision.