Question Content Area There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following...








  1. Question Content Area



    There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following cash flows:



























    First Year

    Second Year

    Third Year

    Total
    Alpha Project$31,500$22,500$5,000$59,000
    Beta Project7,00023,00028,00058,000

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



    A. If the discount rate is 12%, 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$fill in the blank 1
    Beta Project$fill in the blank 2


    B. Which project should be recommended.



    .Please round off anwsers. Thank you










Jun 10, 2022
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