Fitch Industries is in the process of closing 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%. SHOW ALL WORK. Project M Project N

Initial Investment (CF0): $28,500 $27,000 Year (t) Cash Inflows (CFt )

1) $10,000 $11,000

2) 10,000 10,000

3) 10,000 9,000

4) 10,000 8,000

a) Calculate each project's payback period. b) Calculate the net present value for each period c) Calculate the IRR for each project