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Alpha Tech Corp. is evaluating two potential projects, both requiring an initial investment of $50,000. The after-tax cash inflows for each project are as follows:

Alpha Tech Corp. is evaluating two potential projects, both requiring an initial investment of $50,000. The after-tax cash inflows for each project are as follows:

Year

Cash Flows (Project A)

Cash Flows (Project B)

0

-50,000

-50,000

1

15,000

20,000

2

15,000

20,000

3

15,000

20,000

4

20,000

10,000

a. Calculate the payback period for Project A and Project B. b. Which project should Alpha Tech Corp. invest in if the cost of capital is 6%? Show the NPV calculations.

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