• A firm is evaluating two projects with the following cash flows:
• Project M:
  • Year 0: -$25,000
  • Year 1: $10,000
  • Year 2: $12,000
  • Year 3: $14,000
  • Year 4: $16,000
• Project N:
  • Year 0: -$30,000
  • Year 1: $12,000
  • Year 2: $14,000
  • Year 3: $16,000
  • Year 4: $18,000
• The discount rate for both projects is 10%.
• Calculate the NPV for each project and decide which one to undertake.

Requirements:

1. Calculate the NPV of Project M.
2. Calculate the NPV of Project N.
3. Determine which project should be undertaken based on NPV.