Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent.
Year Project M Project N
0 –$140,000 –$359,000
1 61,500 159,300
2 73,400 168,400
3 68,100 154,800
4 40,500 110,400
a. What is the IRR for each project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the NPV for each project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. Which, if either, of the projects should the company accept?