Iota Inc. is considering two projects. Project M requires an initial investment of $29,000 with the following expected cash flows:

• Year 1: $8,000
• Year 2: $10,000
• Year 3: $12,000

Project N needs an initial outlay of $39,000 with the following cash flows:

• Year 1: $10,000
• Year 2: $13,000
• Year 3: $16,000

Requirements:

1. Calculate the NPV for each project using a discount rate of 12%.
2. Compute the IRR for each project.
3. Evaluate the Payback Period for each project.
4. Decide which project Iota Inc. should invest in based on NPV and IRR.