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Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent. Year Project M Project N
| Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent. |
| Year | Project M | Project N |
| 0 | $125,000 | $310,000 |
| 1 | 57,000 | 135,000 |
| 2 | 64,000 | 161,000 |
| 3 | 59,000 | 129,000 |
| 4 | 34,000 | 92,000 |
| Required: | |
| (a) | What is the IRR for each project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| IRR | |
| Project M | % |
| Project N | % |
| (b) | What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| NPV | |
| Project M | $ |
| Project N | $ |
| (c) | Which, if either, of the projects should the company accept? |
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