XYZ Ltd. is analyzing the following two projects:

Project Alpha:

• Year 0: -$5,000,000
• Year 1: $1,200,000
• Year 2: $1,500,000
• Year 3: $2,000,000
• Year 4: $3,000,000

Project Beta:

• Year 0: -$4,000,000
• Year 1: $1,000,000
• Year 2: $1,800,000
• Year 3: $2,200,000
• Year 4: $2,500,000

Requirements:

1. Calculate the NPV for each project using a discount rate of 10%.
2. Determine the IRR for both projects.
3. Evaluate the payback period for each project.
4. Suggest the preferred project based on the NPV, IRR, and payback period.