A firm with a 14% WACC is evaluating two projects for thisyear's capital budget. After-tax cash flows, includingdepreciation, are as follows: 0 1 2 3 4 5 Project M -$6,000 $2,000$2,000 $2,000 $2,000 $2,000 Project N -$18,000 $5,600 $5,600 $5,600$5,600 $5,600 Calculate NPV for each project. Round your answers tothe nearest cent. Do not round your intermediate calculations.Project M $ Project N $ Calculate IRR for each project. Round youranswers to two decimal places. Do not round your intermediatecalculations. Project M % Project N % Calculate MIRR for eachproject. Round your answers to two decimal places. Do not roundyour intermediate calculations. Project M % Project N % Calculatepayback for each project. Round your answers to two decimal places.Do not round your intermediate calculations. Project M yearsProject N years Calculate discounted payback for each project.Round your answers to two decimal places. Do not round yourintermediate calculations. Project M years Project N years Assumingthe projects are independent, which one(s) would you recommend? Ifthe projects are mutually exclusive, which would you recommend?Notice that the projects have the same cash flow timing pattern.Why is there a conflict between NPV and IRR?
