PLEASE PROVIDE CORRECT ANSWER TEACHERS ARE PROVIDING WRONG ANSWER

ABC company has two projects in hand. This company is comparing the returns/cash inflows to decide which project would be better based on the following cash inflows and an initial investment of $15,000. The company will use NPV analysis with 18% discount rate for this analysis. Which project do you think this company will select?

year 1 year 2 year 3

Project M $8100 $5400 $4050

Project N 6750 4050 10,800

OPTIONS

		Project M
		Project N
		None of the above
		Not enough information available