Question: 7. Murray Inc. is considering two projects, Alpha and Omega, whose cash flows are shown below Year CF Project Alpha 5380$380 $380 CF Project Omega
7. Murray Inc. is considering two projects, Alpha and Omega, whose cash flows are shown below Year CF Project Alpha 5380$380 $380 CF Project Omega $2,1505380 $3805390 $765 $765 $765 $765 he projects are mutually exclusive projects based on IRR, while the CFO favors choosing based on NPV. You were hired to advise Murray on the best procedure. If the wrong decision criterion is used, how much potential value will Murray lose? Murray inc:s equally risky, and not repeatable. The CEO wants to choose between the WACC is 6%. a. $188.68 b. $198.61 c. $209.07 d. $219.52
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