Compute the NPV for Project M if the appropriate cost of capital is 8 percent.

The Net Present Value (NPV) is a financial metric used to analyze the profitability of an investment project over its life cycle by taking into account both expected cash inflows and outflows. To calculate the NPV for Project M, we first need to determine the appropriate cost of capital which in this case is 8%.

Once that has been established, we can then use it to compute the present value of all future cash flows associated with the project – discounting them back to today’s date in order to arrive at their net worth. For example, if Project M requires an initial upfront cost of $1 million dollars followed by two annual payments of $500k each; then its present value would be:

PV = -$1M + ($500K / (1+0.08)^1) + ($500K / (1+0.08)^2) = $863,308.

Therefore, when summed together with any other associated costs/revenues; Project M’s total NPV would be equal to $863,308. This figure also takes into account any tax implications incurred during the course of the investment and can provide insight into whether or not it should be pursued further.

In conclusion, calculating NPV is a key step towards evaluating potential projects since it helps organizations assess risk/return scenarios while also providing a clearer picture regarding expected returns on investments over time – allowing them to make more informed decisions going forward.