Two investment proposals have been made and the following data thereon are given:

Project ALPHA Project BETA

Investment 123,417 155,934

Depreciable assets included in the investment figure 60,000 72,000

Economic life 8 years 12 years

Annual sales revenue 65,000 78,000

Annual out-of-pocket operating cost 36,000 42,500

Income tax rate 35%

Cost of capital 10%

Determine which proposal is the better one based on:

a.Internal rate of return

b.Net present value

c.Profitability index

d.Discounted payback period