Mitchell Company has $30,000 to invest and has two alternative uses of the funds, as shown below. Mitchell Company uses an 8% discount rate:

Ignore income taxes. Required: a. Determine the net present value. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

Invest in Project Alpha $ 30,000 $ 8,000 Investment required Annual cash inflows Single cash inflow at the end of 10 years Life of the project Invest in Project Beta $ 30,000 $ 0 $ 120,000 10 years 10 years Project Net Present Value $ 23,680 25,650 X Alpha Beta | A