Evaluate the following two investment projects for your firm:

• Project M:

• Initial Investment: £12,000
• Year 1: £3,000
• Year 2: £4,000
• Year 3: £5,000
• Year 4: £6,000

• Project N:

• Initial Investment: £14,000
• Year 1: £4,000
• Year 2: £5,000
• Year 3: £6,000
• Year 4: £7,000

Requirements:

1. Calculate the Net Present Value (NPV) using a discount rate of 8%.
2. Determine the Internal Rate of Return (IRR).
3. Compute the Payback Period.
4. Analyze the Profitability Index (PI).
5. Assess which project should be undertaken based on the financial metrics calculated.