Mitchell Company has $30,000 to invest and has two alternative uses of the funds, as shown below. Mitchell Company uses an 8% discount rate:

Required:
Ignore income taxes. Which investment would you recommend that the company accept? Show all computations using net present value. Prepare separate computations for each investment.

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Invest in Project Alpha Invest in Project Beta Investment required . Annual cash inflows.. Single cash inflow at the end of 10 years.. $30,000 $8,000 $30,000 $0 $120,000 10 years Life of the project..... 10 years