Vertex Enterprises needs to select between two projects, Project M and Project N.

Project Cash Flows and IRR:

Project	C0 ($ thousands)	C1 ($ thousands)	C2 ($ thousands)	IRR (%)
M	-95	45	50	22.50
N	-105	55	45	21.25

The company's cost of capital is 15%.

Requirements:

1. Discuss the limitations of IRR as a decision tool.
2. Calculate the NPV for each project.
3. Determine the better project based on NPV.
4. Highlight any external factors that could influence the final decision.