Beta Inc. is considering two mutually exclusive projects. Project M requires an initial investment of $25,000 with the following cash flows:

• Year 1: $5,000
• Year 2: $10,000
• Year 3: $15,000

Project N requires an initial investment of $35,000 with the following cash flows:

• Year 1: $10,000
• Year 2: $15,000
• Year 3: $20,000

Requirements:

1. Compute the NPV for each project using a discount rate of 12%.
2. Calculate the Payback Period for each project.
3. Evaluate the IRR for each project.

Assess which project Beta Inc. should choose based on the NPV and IRR