Question: 1. Project M and Project N are two mutually exclusive projects. Project M has a lifetime of 15 years while project N has a lifetime

1. Project M and Project N are two mutually exclusive projects.

1. Project M and Project N are two mutually exclusive projects. Project M has a lifetime of 15 years while project N has a lifetime of 3 years. The current average cost of capital is 3.5%. Using NPV method of capital budgeting, analyse what impact an increase to a high cost of capital has on each of these projects. (300 words)

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