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You have to evaluate two mutually exclusive projects Alpha and Beta. Both projects have a cost fo capital is 12%. Both projects have an economic life of 5 years.

Project Alpha has a cost of $14,000. Its expected cash flows are an annuity of $4,500 per annum.

Project Beta has a cost of $14,000. It has one expected cash flow at the end of period 5 $30,000.

We must figure out the NPR, IRR and CHOICE for both Alpha and Beta.

Complete the following table:

Project: NPR IRR CHOICE

Alpha-

Beta-

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Financial Management, Finance

Category:- Financial Management
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