Outcast, Inc., has hired you to advise the firm on a capital budgeting issue involving two unequal-lived, mutually exclusive projects, M and N. The cash flows for each project are presented in the following table. Calculate the NPV and the annualized net present value (ANPV) for each project using the firm's cost of capital of

8.0%.

Which project would you recommend? (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

	Project M	Project N
Initial Investment	$35,000	$55,000
Year	Cash Inflows
1	$12,000	$18,000
2	25,000	15,000
3	30,000	25,000
4		10,000
5		8,000
6		5,000
7		5,000

Question content area bottom

Part 1

The NPV for project M is __

Part 2

The NPV for project N is __

Part 3

The ANPV for project M is __

Part 4

The ANPV for project N is ___

(Round to the nearest cent.)

Part 5

Which project would you recommend? (Select from the drop-down menu.)

The firm should choose project (N or M)

.