Question: Question 2 Consider the following three projects: Project Alpha: Requires an initial investment of $7.5 mln, provides annual cash inflows of $3.0 mln and has


Question 2 Consider the following three projects: Project Alpha: Requires an initial investment of $7.5 mln, provides annual cash inflows of $3.0 mln and has a 5-year life. Project Beta: Requires an initial investment of $10 mln, provides annual cash inflows of $3.5 mln and has an 8-year life. Project Gamma: Requires an initial investment of $20.0 mln and provides a one-time cash inflow of $33.3 mln in year 19. Assume your firm has a WACC of 2.5% and the firm's marginal tax rate is 25%. b. What is the payback period and the discounted payback period of Project Alpha? [4 points)
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