Question
Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 17 percent. Year Project M Project N
Kerron Company is presented with the following two mutually exclusive projects. The required return for both projects is 17 percent. Year Project M Project N 0 $145,000 $360,000 1 64,000 150,000 2 82,000 185,000 3 73,000 135,000 4 59,000 115,000 Required: (a) What is the IRR for each project? (Do not round intermediate calculations. Enter your answers 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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