A firm with a 14% WACC is evaluating two projects for this years capital budget. After tax cash flows, including depreciation, are as follows:

0 1 2 3 4 5

Project M -$30,000 $10,000 $10,000 $10,000 $10,000 $10,000

Project N -$90,000 $28,000 28,000 $28,000 $28,000 $28,000

1) What is the MIRR?

2) If the projects are mutually exclusive, which would you recommend?

3) Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?