Question: 3. There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected

3. There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following cash flows:

If the discount rate is 12%, compute the NPV of each project.

AlphaProjectBetaProjectYear1$32,0007,500Year2$22,50023,500Year3$5,00028,000Total$59,50059,000

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