Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted payback period (DPB) for each of the following projects The firms required rate of return is 14 percent YEAR PROJECT ALPHA PROJECT BETA 0 $(270,000) $(300,000) 1 120,000 0 2 120,000 (80,000) 3 120,000 555,000 Which project(s) should be purchased if they are independent Which project(s) should be purchased it they are mutually exclusive

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Question: Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted payback period (DPB) for each of the following projects. The

Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted payback period (DPB) for each of the following projects. The firms required rate of return is 14 percent.

YEAR	PROJECT ALPHA	PROJECT BETA
0	$(270,000)	$(300,000)
1	120,000	0
2	120,000	(80,000)
3	120,000	555,000

Which project(s) should be purchased if they are independent? Which project(s) should be purchased it they are mutually exclusive?

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