Question: A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: Project M: Project N:

A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows are as follows: Project M: Project N: Year 0 FCF:-$30 million Year 1 FCF: -$27 million Year 1 FCF: $12 million Year 1 FCF: $11 million Year 2 FCF: $12 million Year 2: FCF: $10 million Year 3 FCF: $16 million Year 3 FCF: $15 million Year 4 FCF: $16 million Year 4 FCE: $15.5 million b. Assuming the projects are independent, which one(s) would you recommend

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