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?