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:

Invest in

Project Alpha Invest in :$30,000 ,Annual cash inflows :$8,000, Single cash inflow at the end of 10 years $ 0

Project BetaInvestment required$30,000,Annual cash inflows$ 0 Single cash inflow at the end of 10 years:$120,000

Life of the project 10 yearsFor two projects

Ignore income taxes.

Required:

a.Determine the net present value of Alpha and Beta