Question: A tech company has two exclusive projects to consider. The first project, Alpha, has an initial outlay of $50,000 with projected returns of $20,000 annually

A tech company has two exclusive projects to consider. The first project, Alpha, has an initial outlay of $50,000 with projected returns of $20,000 annually for the next three years. The second project, Beta, requires an initial outlay of $80,000 with returns of $25,000 annually for the next four years. The company's required rate of return is 8%.

a) Calculate the NPV for both projects.

b) Determine the IRR for both projects.

c) Advise which project the company should undertake.

d) Explain why the NPV method is preferable to the IRR method in this scenario.

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