Table 12.3
Tangshan Mining Company is considering investment in one of two mutually exclusive projects M and N which are described below. Tangshan Mining's overall cost of capital is 15 percent, the market return is 15 percent and the risk-free rate is 5 percent. Tangshan estimates that the beta for project M is 1.20 and the beta for project N is 1.40. 
-Using the risk-adjusted discount rate method of project evaluation, the better investment for Tangshan Mining is ________. (See Table 12.3)
Definitions:
Energy Input
The amount of energy required to produce a given level of output or to perform a specific task.
Replacement Rate
The total fertility rate necessary to offset deaths in a country and thereby keep the size of its population constant (without relying on immigration). For most countries, a total fertility rate of about 2.1 births per woman per lifetime.
Total Fertility Rate
The average number of children a woman would have over her lifetime, given current birth rates.
Subsistence Levels
The minimum level of income or resources that is considered adequate to maintain life and health.
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