Each of the two mutually exclusive projects involves an investment of Tk. 1,25,000. Cashflows of the two projects are expected as follows:

Year	Project M Tk.	Project N Tk.
1	75,000	12,000
2	40,000	18,000
3	35,000	35,000
4	12,000	40,000
5	12,000	85,000

(i) Compute IRR (internal rate of return) for each project.

(ii) Which project would you select, assuming no capital rationing?

Each of the two mutually exclusive projects involves an investment of Tk. 1,25,000. Cashflows of the two projects are expected as follows:

Year	Project M Tk.	Project N Tk.
1	75,000	12,000
2	40,000	18,000
3	35,000	35,000
4	12,000	40,000
5	12,000	85,000

(i) Compute IRR (internal rate of return) for each project.

(ii) Which project would you select, assuming no capital rationing?