The company is evaluating two long-term projects, Project L and Project M. Project L requires an initial investment of $60,000, and Project M requires $58,000.

Yearly Cash Flows

• Year 1: Project L - $15,000; Project M - $17,000
• Year 2: Project L - $17,500; Project M - $14,000
• Year 3: Project L - $18,000; Project M - $13,000
• Year 4: Project L - $14,000; Project M - $12,000

Requirements: (a) Calculate the NPV for each project using a discount rate of 10%. (b) Determine the IRR for each project. (c) Discuss the acceptability of each project if the required rate of return is 11%. (d) Compute the profitability index for both projects. (e) Evaluate how different economic scenarios could impact the projected cash flows and investment decision.