There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $34,853 and is expected to generate the following cash flows:

	First Year	Second Year	Third Year	Total
Alpha Project	$32,500	$22,000	$5,000	$59,500
Beta Project	7,500	24,000	28,816	60,316

A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return.

Alpha Project	fill in the blank 1%
Beta Project	fill in the blank 2%

B. Make a recommendation on which one to accept.

.