Consider the following projects with a cost of capital = 14%:

Year Project M Project T?

0 -$250,000 -$320,000

1 150,000 110,000

2 100,000 150,000

3 70,000 170,000

What does the NPV specifically measure? What is the NPV for each project? Which project(s) should be accepted? Can NPV accurately distinguish between mutually exclusive projects (if so, which project would you choose)? What is the biggest strength of NPV?