There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,506 and is expected to generate the following cash flows: First YearSecond YearThird YearTotalAlpha Project$32,000 $23,000 $5,500 $60,500Beta Project7,000 24,000 30,960 61,960A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return.Alpha Projectfill in the blank 1%Beta Projectfill in the blank 2%B. Make a recommendation on which one to accept.Alpha . There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,506 and is expected to generate thefollowing cash flows:First YearSecond YearThird YearTotalAlpha Project$32,000$23,000$5,500$60,500Beta Project7,00024,00030,96061,960A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return.Alpha Project%Beta Project%B. Make a recommendation on which one to accept.Alpha v

Internal rate of return(IRR): It is the discount rate which makes the net present value (Difference…

Answered: A. Calculate the internal rate of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,506 and is expected to generate the following cash flows:

	First Year	Second Year	Third Year	Total
Alpha Project	$32,000	$23,000	$5,500	$60,500
Beta Project	7,000	24,000	30,960	61,960

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

Alpha Project	fill in the blank 1%
Beta Project	fill in the blank 2%

B. Make a recommendation on which one to accept.

Alpha .

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,506 and is expected to generate the
following cash flows:
First Year
Second Year
Third Year
Total
Alpha Project
$32,000
$23,000
$5,500
$60,500
Beta Project
7,000
24,000
30,960
61,960
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
%
B. Make a recommendation on which one to accept.
Alpha v

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