Jones Materials Incorporated is considering two mutually exclusive projects, Alpha and Beta, with an initial investment of $200 000 and $300 000, respectively. The board of directors has set a three-year life span for them with a cost of capital of 10% and 15%, respectively.

year		alpha	betta
1	Cash Flow	$100,000	$100,000
2	Cash Flow	$120,000	$100,000
3	Cash Flow	$40,000	$150,000

A. For both projects, determine the: i. payback period. ii. net present value. iii. profitability index. B. Make and justify a recommendation.