There are two projects under consideration by the Rainbow factory Each of the projects will require an initial investment of $35,514 and is expected to generate the following cash flows First Year Second Year Third Year Total Alpha Project $32,500 $23,000 $4,500 $60,000 Beta Project 8,000 23,000 30,633 61,633 A Calculate the internal rate of return on both projects Use the IRR spreadsheet function to calculate internal rate of return Alpha Project Beta Project

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Question: There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,514 and is expected to

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,514 and is expected to generate the following cash flows:

	First Year	Second Year	Third Year	Total
Alpha Project	$32,500	$23,000	$4,500	$60,000
Beta Project	8,000	23,000	30,633	61,633

A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return.

Alpha Project	%
Beta Project	%

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