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

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Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 18 percent. Year o ? Project M Project N -\$141,000 \$354,000 63,400 153,000 81,400 179,000 72,400 138,000 58,400 109,000 2. 3 4 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.) 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.) c. Which, if either, of the projects should the company accept? % % a. Project M Project N b. Project M Project N C. Accept project

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2 weeks 2023-03-15T10:00:11+00:00 1 Answer 3 views Teacher 0

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a. To find the IRR for each project, we can use the IRR function in Excel or a financial calculator:

IRR(Project M) = 28.34%
IRR(Project N) = 26.61%

b. To find the NPV for each project, we can use the NPV function in Excel or a financial calculator:

NPV(Project M) = \$12,710.83
NPV(Project N) = \$28,691.91

c. Since both projects have positive NPVs and are mutually exclusive, the company should choose the project with the higher NPV, which is Project N. Therefore, the company should accept Project N.