As a manager of UAA Company your task is to evaluate the investment potential of two mutually exclusive projects using the data below.

Market return (Rm): 10%

Risk-free rate of return (Rf): 2.5%

UAA stock beta: 1.60

Year	Project M	Project N
0	-$150,000	-$372,500
1	68,710	159,410
2	76,900	193,300
3	71,400	154,900
4	40,610	110,510

1. Assume that UAA is an all equity firm. Use the Capital Asset Pricing Model (CAPM) to determine the Required Rate of Return for this firm?
2. Calculate the IRR for each project using the IRR function in Excel?
3. Calculate the NPV for each project using the NPV function in Excel?
4. Which, if either, of the projects should the company accept? Explain why?