Fitch Industries is in the process of choosing the better of two mutually exclusive capital

expenditure projects, $M$ and $N.$ The cash flows for each project are shown in the following table.

The firm's cost of capital is $9\%.$

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.

e$.$ Draw the NPV profiles for these projects in the same set of axes, and explain the

circumstances under which a conflict in rankings might exist.