Below are the cash flows for project $M$ and Project $N$ and the company is targeting to breakeven

within $3$ years.

a$)$ Calculate the payback period for both projects. $(4$ marks$)$

b$)$ If the cost of capital is $8\%,$ calculate the net present value $($NPV$)$ for both projects. $(6$ marks$)$

c$)$ Calculate the profitability index for each project. $(4$ marks$)$

d$)$ Which project$/$s should be chosen if the projects are, i$)$ mutually exclusive? ii$)$ independent?

Provide explanation to your answers. $(6$ marks$)$help