3. 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: Year 1 Year 2 YearTotal Alpha Project 532.000 522.500 $5,000 $50.500 Beta Project 7.500 21.500 28,000 $9,000 If the discount rate is 12%.compute the NPV of each project. 4. Pompeia's Pizza has a delivery car that it uses for pizza deliveries. The transmission needs to be replaced and there are several other repairs that need to be done. The car is nearing the end of its life, so the options are to either overhaul the car or replace it with a new car. Pompeii's has put together the following budgetary items Present Car New Car Purchase.com 531.000 Transmission and other repairs $ 8.500 Annual caserating.com 12.500 10.000 Fair market value now 5.000 Fair market value in five years 500 5.000 If Pompeii's replaces the transmission of the pizza delivery vehicle, they expect to be able to use the vehicle foranother 5 years. If they sell the old vehicle and purchase a new vehicle, they will use that vehicle for 5 years and then trade it in for another new pizza delivery vehicle. If they trade for the new delivery vehicle their operating expenses will decrease because t se the new vehicle is more gas efficient and the maintenance ce a new car is less. This project is analyzed using a discount rate of 1296. What should Pompeii's do