$3)$ show $$me $$steps $$using $$financial $$calculator:

Tangshan Mining Company is considering investment in one

of two mutually exclusive projects M and N which are described

below. Tangshan Mining's overall cost of capital is $15$ percent,

the expected market return is $15$ percent, and the risk$-$free rate is

$5$ percent. Tangshan estimates that the beta for project M is $1\mathrm{.}20$

and the beta for project N is $1\mathrm{.}40.$

a$)$ Using the risk$-$adjusted discount rate method of project

evaluation, the NPV for Project $M$ is

A$)$ $$156,494$

B$)$ $$122,970$

C$)$ $$85,732$

D$)$ $$500,000$

$($b$)$ Using the risk$-$adjusted discount rate method of project

evaluation, the NPV for Project N is

A$)$ $$166,132$

B$)$ $$122,970$

C$)$ $$85,732$

D$)$ $$600,000$

$($c$)$ Using the risk$-$adjusted discount rate method of project

evaluation, the better investment for Tangshan Mining is

$($See Table $12\mathrm{.}3)$

A$)$ Project $M$ because it has a higher NPV

B$)$ Project $N$ because it has a higher NPV

C$)$ Project $N$ because it has a higher IRR

D$)$ Project $M$ because it has a higher IRR

$($d$)$ Which project would be preferable if both projects' betas

were equal to $\frac{1\mathrm{.}0}{\frac{?}{?}}?($See Table $12\mathrm{.}3)$

A$)$ Project $M$ because it has a higher NPV

B$)$ Project N because it has a higher NPV

C$)$ Project $N$ because it has a higher IRR

D$)$ Project $M$ because it has a higher IRR