Innovative Tech Solutions is considering two new projects with the following net cash flows The company's required rate of return on investments is 12 (PV of $1, FV of $1, PVA of $1, and FVA of $1) Year Project Alpha Project Beta 0 $(250,000) $(300,000) 1 $90,000 $120,000 2 $130,000 $150,000 3 $160,000 $180,000 4 $60,000 $90,000 a Compute the payback period for each project Based on the payback period, which project is preferred

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Question: Innovative Tech Solutions is considering two new projects with the following net cash flows. The company's required rate of return on investments is 12%. (PV

Innovative Tech Solutions is considering two new projects with the following net cash flows. The company's required rate of return on investments is 12%. (PV of $1, FV of $1, PVA of $1, and FVA of $1).

Year	Project Alpha	Project Beta
0	$(250,000)	$(300,000)
1	$90,000	$120,000
2	$130,000	$150,000
3	$160,000	$180,000
4	$60,000	$90,000

a. Compute the payback period for each project. Based on the payback period, which project is preferred?

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