LMN Industries Financial Analysis

• LMN Industries is evaluating two investment projects.
• Year 0: Project M: -250,000, Project N: -250,000
• Year 1: Project M: 80,000, Project N: 30,000
• Year 2: Project M: 70,000, Project N: 50,000
• Year 3: Project M: 60,000, Project N: 80,000
• Year 4: Project M: 50,000, Project N: 120,000
• Year 5: Project M: 40,000, Project N: 150,000
• Cost of capital: 8%
• Requirements:
  1. Calculate the NPV for both projects.
  2. Calculate the IRR for both projects.
  3. Determine the payback period for each project.

Analyze which project should be chosen considering NPV, IRR, and payback period.