A firm is evaluating two investment projects, Alpha and Beta. Project Alpha requires an initial investment of $1,000 and is expected to generate $300 annually for 5 years. Project Beta requires a $1,200 investment with expected cash flows of $400 annually for 4 years. The cost of capital is 12%.

1. Calculate the NPV for each project.
2. Determine the IRR for each project.
3. Based on NPV and IRR, which project should be undertaken?
4. Assess the risk factors associated with each project.