Two mutually exclusive projects

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Reece 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 –$ 138,000 –$ 357,000 1 63,700 151,500 2 81,700 182,000 3 72,700 136,500 4 58,700 112,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project M % Project N % b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project M $ Project N $ c. Which, if either, of the projects should the company accept?

Reference no: EM131915109

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