Year	Project M	Project O
1	$12,000	$10,000
2	12000	10000
3	12000	15000
4	12000	15000
5	15000

A. Determine the payback period for each project Payback(Project M)= Payback(Project O)=

B. Calculate the net present value and profitability index for each project based on a 10% cost of capital. Which, if either, of the project is acceptable?

NPV(M)= PI(M)= NPV(O)= PI(O)=

c. Determine the internal rate of return and modified internal rate of return for Projects M and O.

IRR(M): IRR(O): MIRR calculation of projects M: MIRR calculation of project O: