A firm with a 14% WACC is evaluating two projects for this years capital budget. After...

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Finance

A firm with a 14% WACC is evaluating two projects for this yearscapital budget. After tax cash flows, including depreciation, areas follows:
0 1 2 3 4 5
Project M -$30,000 $10,000 $10,000 $10,000 $10,000 $10,000
Project N -$90,000 $28,000 28,000 $28,000 $28,000 $28,000
1) What is the MIRR?
2) If the projects are mutually exclusive, which would yourecommend?
3) Notice that the projects have the same cash flow timingpattern. Why is there a conflict between NPV and IRR?

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A firm with a 14% WACC is evaluating two projects for this yearscapital budget. After tax cash flows, including depreciation, areas follows:0 1 2 3 4 5Project M -$30,000 $10,000 $10,000 $10,000 $10,000 $10,000Project N -$90,000 $28,000 28,000 $28,000 $28,000 $28,0001) What is the MIRR?2) If the projects are mutually exclusive, which would yourecommend?3) Notice that the projects have the same cash flow timingpattern. Why is there a conflict between NPV and IRR?