DEF Inc. has two projects, Project M and Project N, each requiring an initial outlay of $250,000. The firm's discount rate is 8%. The estimated net cash flows are as follows:

Estimated Net Cash Flows (in $):

Year	Project M	Project N
0	(250,000)	(250,000)
1	60,000	70,000
2	70,000	80,000
3	80,000	90,000
4	90,000	100,000
5	100,000	110,000

Requirements:

1. Determine the payback period for each project.
2. Calculate the NPV for both projects.
3. Compute the IRR for each project.
4. Discuss which project should be accepted if they are independent.
5. Evaluate which project should be rejected if they are mutually exclusive.