Question: Evaluate the following two mutually exclusive projects with equal lives and cost outlay but different cash inflow patterns at an 8% cost of capital. Year

Evaluate the following two mutually exclusive projects with equal lives and cost outlay but different cash inflow patterns at an 8% cost of capital.

Year

Project M

Project N

0

(120,000)

(120,000)

1

50,000

20,000

2

40,000

30,000

3

30,000

40,000

4

20,000

50,000

5

10,000

60,000

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