Alpha Manufacturing is evaluating two projects with the following net cash flows The company's required rate of return on investments is 10 (PV of $1, FV of $1, PVA of $1, and FVA of $1) Year Project Alpha1 Project Alpha2 0 $(300,000) $(350,000) 1 $90,000 $110,000 2 $130,000 $150,000 3 $170,000 $190,000 4 $210,000 $230,000 a Calculate the payback period for each project Which project is preferred based on the payback period b Calculate the net present value for each project Which project is preferred based on the net present value

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Question: Alpha Manufacturing is evaluating two projects with the following net cash flows. The company's required rate of return on investments is 10%. (PV of $1,

Alpha Manufacturing is evaluating two projects with the following net cash flows. The company's required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1).

Year	Project Alpha1	Project Alpha2
0	$(300,000)	$(350,000)
1	$90,000	$110,000
2	$130,000	$150,000
3	$170,000	$190,000
4	$210,000	$230,000

a. Calculate the payback period for each project. Which project is preferred based on the payback period?

b. Calculate the net present value for each project. Which project is preferred based on the net present value?

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