There are two projects under consideration by the Rainbow factory. Each of the projects will require...
There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,000 and is expected to generate the following cash flows:
| First Year | Second Year | Third Year | Total | |
| Alpha Project | $32,500 | $23,000 | $4,500 | $60,000 |
| Beta Project | 7,500 | 24,000 | 28,500 | 60,000 |
(Click here to see present value and future value tables)
A. If the discount rate is 15%, compute the NPV of each project. Round your present value factor to three decimal places and final answer to answer to 2 decimal places.
| Alpha Project | $ |
| Beta Project | $ |
B. Which project should be recommended.
.
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There are two projects under consideration by the Rainbow
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