Transcribed Image Text: Homework Assignment #13 Print Item There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and

Transcribed Image Text: Homework Assignment #13
Print Item
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
$32,500
$23,000
$5,000
$60,500
Beta Project
7,500
24,000
28,500
60,000
(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. Transcribed Image Text: < Principles of Accounting, Vol... T ime Value of Money E Table of contents Search this book E My highlights B Print Present Value of $1 Table 1 Factor = (1 + i)" Rate (i) 1% 2% 3% 5% 8% 10% 12% 15% 20% 1 0.990 0.980 0.971 0.952 0.926 0.909 0.893 0.870 0.833 0.980 0.961 0.943 0.907 0.857 0.826 0.797 0.756 0.694 3 0.971 0.942 0.915 0.864 0.794 0.751 0.712 0.658 0.579 4 0.961 0.924 0.888 0.823 0.735 0.683 0.636 0.572 0.482 0.952 0.906 0.863 0.784 0.681 0.621 0.567 0.497 0.402 0.942 0.888 0.837 0.746 0.630 0.564 0.507 0.432 0.335 7 0.933 0.871 0.813 0.711 0.583 0.513 0.452 0.376 0.279 8 0.924 0.853 0.789 0.677 0.540 0.467 0.404 0.327 0.233 9 0.914 0.837 0.766 0.645 0.500 0.424 0.361 0.284 0.194 10 0.905 0.820 0.744 0.614 0.463 0.386 0.322 0.247 0.162 11 0.896 0.804 0.722 0.585 0.429 0.350 0.287 0.215 0.135 12 0.888 0.788 0.701 0.557 0.397 0.319 0.257 0.187 0.112 13 0.879 0.773 0.681 0.530 0.368 0.290 0.229 0.163 0.093 14 0.861 0.758 0.661 0.505 0.340 0.263 0.205 0.141 0.078 15 0.861 0.743 0.642 0.481 0.315 0.239 0.183 0.123 0.065 16 0.853 0.728 0.623 0.458 0.292 0.218 0.163 0.107 0.054 17 0.844 0.714 0.605 0.436 0.270 0.198 0.146 0.093 0.045 18 0.836 0.700 0.587 0.416 0.250 0.180 0.130 0.081 0.038 (u) poļua

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