STU Inc. is evaluating two projects, each requiring an initial investment of ₹50,000 and a life of 4 years. The company’s required rate of return is 15%. The projects will be depreciated on a straight-line basis. The net cash flows (before taxes) expected to be generated by the projects and the present value (PV) factor (at 15%) are as follows:

Year	1	2	3	4
Project M (₹)	15,000	15,000	15,000	15,000
Project N (₹)	20,000	10,000	8,000	12,000
PV factor (at 15%)	0.870	0.756	0.658	0.572

Requirements:

• Calculate the NPV of each project.
• Determine the IRR for each project.
• Calculate the payback period for each project.
• Assess the profitability index for each project.
• Recommend which project to undertake based on the above analysis.