There are two projects under consideration by the Rainbow factory Each of the projects will require an initial investment of $34,000 and is expected to generate the following cash flows First Year Second Year Third Year Total Alpha Project $32,500 $22,000 $5,500 $60,000 Beta Project 8,000 23,000 28,000 59,000 (Click here to see present value and future value tables) A If the discount rate is 10 , compute the NPV of each project Round your present value factor to three decimal places and final answer to answer to 2 decimal places Alpha Project $ Beta Project $ B Which project should be recommended Alpha

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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 $34,000 and is expected to

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,000 and is expected to generate the following cash flows:

	First Year	Second Year	Third Year	Total
Alpha Project	$32,500	$22,000	$5,500	$60,000
Beta Project	8,000	23,000	28,000	59,000

(Click here to see present value and future value tables)

A. If the discount rate is 10%, compute the NPV of each project. Round your present value factor to three decimal places and final answer to answer to 2 decimal places.

Alpha Project	$
Beta Project	$

B. Which project should be recommended.

Alpha .

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