Ok. I am going to post a somewhat incompletesolution.
Let,initially the ball be coming horizontally with velocity v0.
Now after first collision, the mass M/N gets deflected at an angle θ with horizintal[in the below side].
consequently to hit the next ball let the ball of mass m move towards second M/N ball.
As N→∞, We may assume that, the mass m goes off at an angle π/N with horizontal[at upper side].
with velocity v1
So,
mv_0=\frac{MV_1 Cos \theta}{N} + mv_1 cos(\frac{\pi}{2N})
and
mv_1 sin(\frac{\pi}{2N})= \frac{MV_1 sin \theta}{2N}
Putting value of V_1 from second equation in first,
we have
v_1=\frac{v_0}{Sin(\frac{\pi}{2N}cot\theta)+cos(\frac{\pi}{2N})}
clearly, as N→∞, in all collisions, m moves tangentially to "attack" the next.
Thus from above recurrence
replacing v_0 by v_n and v_1 by v_{n+1},
v_n=v_0 (Cosec(\theta+\frac{\pi}{2N})sin(\theta))^n
So, we have v_N=final speed from above by putting n=N.
v_N=v_0 (Cosec(\theta+\frac{\pi}{2N})sin(\theta))^N
As N→∞, this thing goes to
e^{-\0.5 pi cot{\theta}}v_0.
Now as sin^{-1}\frac{M}{Nm} is maximum angle of deviation[as Rohan said],i need to prove min{cot θ}=2, any suggestions...



