Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted payback period (DPB) for each of the following projects. The firms required rate of return is 14 percent.

Year

Project Alpha

Project Beta

0

$(270,000)

$(300,000)

1

120,000

0

2

120,000

(80,000)

3

120,000

555,000

Which project(s) should be purchased if they are independent? Which project(s) should be purchased if they are mutually exclusive?