Consider the following two projects:

a$)$ What is the Payback period for each project? Give your decision if the target or required

PBP is $1\mathrm{.}50$ years.

b$)$ What is the NPV for each project $($assume project Alpha has a required rate of return of

$12\%$ and project Beta a required rate of return of $15\%)?$

c$)$ What is the IRR for each project?

d$)$ These projects are mutually exclusive $($meaning$,$ if you accept one of them, you do not

accept the other even if both projects are acceptable$).$ Which project would you recommend

your company accept? Why? Is there a conflict between the capital budgeting criteria? Why?