There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,580 and is expected to generate the following cashflows:First YearSecond YearThird YearTotalAlpha Project$32,000$22,500$4,500$59,000Beta Project8,00023,50025,66457,164A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return.%Alpha ProjectBeta ProjectB. Make a recommendation on which one to accept. The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment:YearCash OutflowCash Inflow1$1,905,000$100,000550,000195,000355,0004485,000510,000605,000595,000300,000245,000245,00010A. What is the payback period of this uneven cash flow? Round your answer to 2 decimal places.yearsB. Does your answer change if year 10's cash inflow changes to $500,000?if the cash inflow in year 10 changes to $500,000.The answer for part A

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,580 and is expected to generate the following cash flows: First Year Second Year Third Year Total Alpha Project $32,000 $22,500 $4,500 $59,000 Beta Project 8,000 23,500 25,664 57,164 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.

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,580 and is expected to generate the following cash flows: First Year Second Year Third Year Total Alpha Project $32,000 $22,500 $4,500 $59,000 Beta Project 8,000 23,500 25,664 57,164 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 7PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...

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