1. Consider the following two independent projects by Microsoft. Note that these are the same two projects as in problem 1. Alpha lasts for 5 years while Beta lasts for 7 years. According to the NPV rule, which project(s) should you take? (2.5 points)

   Project	Year 0 C/F	Year 1 C/F	Year 2 C/F	Year 3 C/F	Year 4 C/F	Year 5 C/F	Year 6 C/F	Year 7 C/F	Discount Rate
   Alpha	-79	20	25	30	35	40	-	-	15%
   Beta	-80	25	25	25	25	25	25	25	16%

   		Alpha
   		Beta
   		Both
   		None

2. Consider the following two independent projects by Microsoft. Note that these are the same two projects as in problem 1. Alpha lasts for 5 years while Beta lasts for 7 years. According to the IRR rule, should you accept Project Beta?

   		Yes
   		No

3. Consider the following two independent projects by Microsoft. Note that these are the same two projects as in problem 1. Alpha lasts for 5 years while Beta lasts for 7 years. Now suppose that Project Betas Year 7 cash flow is actually negative twenty-five dollars (-25) instead. Should you accept the project according to the IRR decision rule?

   		Yes
   		No