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Reece Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent. Year Project M Project N

Reece Company is presented with the following two mutually

exclusive projects. The required return for both projects is 15 percent.

Year Project M Project N

0 $150,000 $372,000

1 68,600 159,300

2 76,800 193,200

3 71,300 154,800

4 40,500 110,400

a. What is the IRR for each project?

b. What is the NPV for each project?

c. Which, if either, of the projects should the company accept?

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