Bausch Company is presented with the following two mutually exclusive projects. The required return for both...

Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent.

Year	Project M	Project N
0	–$140,000	–$359,000
1	61,500	159,300
2	73,400	168,400
3	68,100	154,800
4	40,500	110,400


a.	What is the IRR for each project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	What is the NPV for each project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.	Which, if either, of the projects should the company accept?

Expert Solution

jeff jeffy answered 11 months ago

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