Fitch Industries is in the process of choosing the better of two equal-risk, mutually exclusive capital expenditure projects- M and N. The relevant cash flows for each project are shown in the following table. The firms cost of capital is 14% Project M Project N Initial Investment: $28,500 $27,000 Year Cash Inflows

1 $10,000 $11,000

2 $10,000 $10,000 3 $10,000 $9,000 4 $10,000 $8,000

Calculate the IRR for each project. Please show your work.