Two mutually exclusive projects, Alpha and beta have free cash flows listed below. The firm has a cost of capital of 10%. Calculate the NPV and IRR of Alpha and Beta and determine which of the two projects should be selected:

Alpha Beta

year 0 -$25,000 -$55,000

year 1 $5,000 $10,000

year 2 $5,000 $10,000

year 3 $5,000 $10,000

year 4 $5,000 $10,000

year 5 $5,000 $10,000

year 6 $5,000 $10,000