There are two projects under consideration by the Rainbow factory. Each of the projects will require an
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There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment or $28,000 and is expected to generate the following cash flows:
If the discount rate is 5% compute the NPV of each project and make a recommendation of the project to be chosen.
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Alpha Project Beta Project Year 1 Year 2 Year 3 22,000 23,500 5,000 12,700 22,000 15,800 Total 50,500 50,500
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