Sigma Corp. has the following projects under consideration, Project M and Project N:

Project M:

• Year 0: -$210,000
• Year 1: $60,000
• Year 2: $70,000
• Year 3: $80,000
• Year 4: $90,000

Project N:

• Year 0: -$200,000
• Year 1: $50,000
• Year 2: $60,000
• Year 3: $70,000
• Year 4: $80,000

The discount rates are 6% for Project M and 8% for Project N.

a) Calculate the payback period for each project.

b) Calculate the IRR for each project.
 ii. Which project should be accepted based on the IRR rule?

c) Calculate the NPV for each project.