Fitch Industries is in the process of choosing the better of two equal-risk, mutally-exclusive capital expenditure projects, M and N. The relavent cash flows for each project are shown in the following table. The firm's cost of capital is listed below. a. Calculate each project's payback period. 5 points b. Calculate the net present value (NPV) for each project. 5 points c. Calculate the internal rate of return (IRR) for each project. 5 points d. Summarize the preferences dictated by each measure you calculated and indicate which project you would recommend. Explain why. 5 points Initial investment Project M Project N $(30,000.00) $(28,000.00) 1$ 12,000.00 $ 11,000.00 2$ 12,000.00 $ 10,500.00 3 $ 12,000.00 $ 9,000.00 4 $ 12,000.00 $8,000.00 14% Cost of capital 12 13 14 555555 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 a b C Project M Project N $(30,000.00) $(28,000.00) 1$ 12,000.00 $ 11,000.00 2 $ 12,000.00 $ 10,500.00 3 $ 12,000.00 $ 9,000.00 12,000.00 $ 4 $ 8,000.00 14% Initial investment Cost of capital Payback period Net present value Internal rate of return d. +