You are evaluating two projects with the following cash flows:YearProject MProject N0-$1,000,000-$1,500,0001$300,000$400,0002$400,000$500,0003$500,000$600,0004$600,000$700,000Requirements:Calculate the NPV for...

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Accounting

You are evaluating two projects with the following cash flows:

Year

Project M

Project N

0

-$1,000,000

-$1,500,000

1

$300,000

$400,000

2

$400,000

$500,000

3

$500,000

$600,000

4

$600,000

$700,000

Requirements:
  1. Calculate the NPV for each project at a discount rate of 11%.
  2. Determine the payback period for each project.
  3. Identify the IRR for each project.
  4. Which project should be selected based on NPV?

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