A company is considering two projects, Project M and Project N. The initial investments required are $30,000 and $35,000 respectively.

• Project M generates the following cash flows over 4 years: $10,000, $12,000, $15,000, $8,000.
• Project N generates the following cash flows over 4 years: $12,000, $10,000, $14,000, $9,000.

Requirements:

• Calculate the NPV for each project using a discount rate of 11%.
• Determine the IRR for each project.
• State your accept/reject decision.
• Calculate the profitability index (PI) for each project.