Exercise : Fitch Industries is in the process of choosing the better of two equal-risk, mutually exclusive capital expenditure projectsM and N. The relevant cash flows for each project are shown in the following table. The firm's cost of capital is 14%. Initial investment (CF) Year (0) 1 2 3 Project M Project N $28,500 $27.000 Cash inflows (CF) $10,000 $11,000 10,000 10,000 10,000 9,000 10,000 8,000 a. Calculate each project's payback period. b. Calculate the net present value (NPV) for each project. c. Calculate the internal rate of return (IRR) for each project. d. Summarize the preferences dictated by each measure you calculated, and indicate which project you would recommend. Explain why