Evaluate the following projects using the net present value criteria. Suppose the cost of capital is 9%.

	Project M	Project N
First Cash Out	-260.000$	-260.000$
Year 1 Cash flow	19.000	185.000
Year 2 Cash flow	121.000	85.000
Year 3 Cash flow	185.000	55.000

A.	What are the NPVs for projects and what do these numbers tell you?
B.	If the projects are independent, which one would you accept according to the NPV criteria?
C.	If the projects are mutually exclusive, which would you accept based on the NPV criterion?
D.	Both projects have a total cash inflow of $325,000 and the same initial outflow. Why don't both projects have the same NPV?
e.	If the cost of capital rises to 12%, what effect will this have on your decision?
F.	Why does a change in cost of capital have an effect on NPV?