Ask HN: When vendoring for an OSS project, how do you handle licenses?

This question seems almost too simplistic to ask, but I wanted to check with HN what the current best practice was.

The context: I'm considering vendoring a couple of dependencies, both under the MIT License, in a project I intend to also publish under the MIT License.

One of the requirements of the MIT License is that the original licenses must be preserved and accompany all copies. Is it sufficient if I preserve them within the src/vendor/ folder? Or do I need to concatenate both their licenses to the LICENSE file in the root folder of my project?

I intend to deliver this project as a source download only, if that makes a difference.

Finally, how do people who vendor projects with different (and perhaps incompatible) licenses deal with it?