Transcribed image text: 02) Alpha Company is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate that the cost of capital is 5 percent and that the investments will produce the following after-tax cash flows (in millions of dollars): Year Project 1 ($ Mn) Project 2 ($ Mn) 1 5 20 2 3 15 8 20 6 10 10 4 a) What is the payback period of each of the projects? (3 marks) b) What is the discounted payback period for each of the projects? (6 marks) If the two projects are mutually exclusive, which project or projects should the firm undertake based on the NPV