Evaluate Projects M and N using the following data:

	Project M	Project N
Cost of Capital	10%	12%
Initial Investment	$160,000	$140,000
Cash Inflow Year 1	$50,000	$60,000
Cash Inflow Year 2	$60,000	$70,000
Cash Inflow Year 3	$80,000	$50,000

a. Calculate the payback period for both projects.
 b. Calculate the NPV of both projects using the respective cost of capital.
 c. Find the IRR for both projects.
 d. Determine the profitability index for each project.
 e. Make a recommendation on which project should be selected.