Payback, NPV, IRR for independent projects.

The net cash flows for Projects M and S follow.

Each project has a cost of $240,000.

Year Project M Project S

1 $150,000 $85,000

2 90,000 $85,000

3 55,000 $85,000

4 20,000 $85,000

1. Calculate each projects payback.

2. Calculate each projects NPV at a 10% cost of capital.

3. Calculate each projects IRR