Part A

Stark Enterprises is considering two mutually exclusive projects. The relevant cash flows for each project are shown in the table below.

$\backslash$table$[[,$Project Alpha,Project Beta$],[$Initial Investment,$$50,000,$$$60,000],[$Year$,$Net Cash Inflows$],[1,$$$22,000,$$$35,000],[2,$$$22,000,$$$25,000],[3,$$$22,000,$$$20,000],[4,$$$22,000,$$$15,000]]$

a$.$ Suppose the company has a cost of capital of $12\%.$ Determine the Net Present Value $($NPV$)$ of each project. Which project is preferred and why?

b$.$ What is the discounted payback period for each project?

c$.$ If you were to guess the IRR for each project would it be above or below $12\%$ and why?