Integrative Case 4

You are tasked with evaluating two competing projects, Project Alpha and Project Beta, with the following estimated cash flows.

Projected Cash Flows:

Year	Project Alpha	Project Beta
0	($180)	($220)
1	$40	$70
2	$50	$90
3	$60	$110
4	$70	$130

Requirements:

1. Calculate the traditional Payback Period for both projects.
2. Compute the Net Present Value (NPV) using a 9% discount rate.
3. Find the Internal Rate of Return (IRR) for each project.
4. Identify which project has a higher NPV and which has a higher IRR.
5. Recommend which project to proceed with based on the financial metrics.