Question: Alpha Services is considering a new project that requires an initial investment of $500,000. The project is expected to generate annual cash flows of $120,000

Alpha Services is considering a new project that requires an initial investment of $500,000. The project is expected to generate annual cash flows of $120,000 for 6 years. The company’s cost of capital is 12%.

Requirement: Calculate the NPV, payback period, and IRR for the project. Should Alpha Services proceed with the project? Provide a detailed explanation based on your calculations.

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