The cash flows for projects M and N are given below:

Project M:

• Year 0: -$60,000
• Year 1: $12,000
• Year 2: $18,000
• Year 3: $24,000
• Year 4: $30,000

Project N:

• Year 0: -$70,000
• Year 1: $14,000
• Year 2: $20,000
• Year 3: $26,000
• Year 4: $32,000

a. Calculate the NPV, IRR, and traditional payback period for each project, with a required rate of return of 9 percent.

b. Which project(s) should be selected if they are independent, and which should be selected if they are mutually exclusive?