Alpha Corp is evaluating two investment opportunities Both projects require an initial investment of USD 100,000 The cash flows are as follows Year Cash Flows (Project X) Cash Flows (Project Y) Initial Investment (100,000) (100,000) 1 30,000 20,000 2 40,000 30,000 3 50,000 50,000 4 10,000 40,000 Requirements a Compute the payback period for each project b Calculate the NPV of each project if the discount rate is 10 c Determine the Internal Rate of Return (IRR) for both projects and decide which project should be selected based on IRR

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Question: Alpha Corp. is evaluating two investment opportunities. Both projects require an initial investment of USD 100,000. The cash flows are as follows: Year Cash Flows

Alpha Corp. is evaluating two investment opportunities. Both projects require an initial investment of USD 100,000. The cash flows are as follows:

Year	Cash Flows (Project X)	Cash Flows (Project Y)
Initial Investment	(100,000)	(100,000)
1	30,000	20,000
2	40,000	30,000
3	50,000	50,000
4	10,000	40,000

Requirements: a. Compute the payback period for each project. b. Calculate the NPV of each project if the discount rate is 10%. c. Determine the Internal Rate of Return (IRR) for both projects and decide which project should be selected based on IRR.

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