G.219. Ch 11 ProblemseBookThere are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $36,000 and is expected to generate the following cash flows:First Year Second Year Third Year TotalAlpha Project$4,500 $58,500$22,00023,000Beta Project28,00059,000(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 $Beta Project $B. Which project should be recommended.$32,0008,000

By calculating the Net present value we can understand which gives profit or incur loss, so we can…

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $36,000 and is expected to generate the following cash flows: Second Year Third Year Total First Year $32,000 $4,500 $58,500 8,000 28,000 59,000 $22,000 23,000 Alpha Project Beta Project (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 $ Beta Project $ B. Which project should be recommended.