A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 1 2 3 4 5 Project M -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000 Project N -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600

Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent. Project M: $ Project N: $

Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: % Project N: %

Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: % Project N: %

Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: years Project N: years

Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: years Project N: years

Assuming the projects are independent, which one(s) would you recommend? -Select-

If the projects are mutually exclusive, which would you recommend? -Select- Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR? -Select-