B$.$ CAPITAL BUDGETING Fitch Industries is in the process of choosing the better of two equal$-$risk, mutually exclusive capital expenditure projects $\backslash (-$M $\backslash )$ and $\backslash ($ N $\backslash ).$ The relevant cash flows for each project are shown in the following table.

projrct M project N

CFo $2850027000$

year expected annual net profit $($loss$)$

$11000011000$

$21000010000$

$3100009000$

$4100008000$

IRR $15\%16\%$

The firm's cost of capital is $\backslash (14\backslash \%\backslash ).$ a$.$ Calculate each project's payback period. b$.$ Calculate the net present value $($NPV$)$ for each project. c$.$ Summarize the preferences dictated by each measure you calculated as well as taking into account the IRR given, and indicate which project you would recommend. Explain why.