The company is analyzing two projects, Project M and Project N. Project M requires an initial investment of $40,000, and Project N requires $38,000.

Yearly Cash Flows

• Year 1: Project M - $11,000; Project N - $13,000
• Year 2: Project M - $13,500; Project N - $10,000
• Year 3: Project M - $14,000; Project N - $9,000
• Year 4: Project M - $10,000; Project N - $8,000

Requirements: (a) Calculate the NPV for each project using a discount rate of 9%. (b) Determine the IRR for each project. (c) Discuss the decision criteria if the projects are mutually exclusive. (d) Compute the payback period for both projects. (e) Assess the impact of potential risk factors on the projected cash flows.