Omega Corporation is evaluating two mutually exclusive projects, Project Alpha and Project Beta. Each project requires an initial investment of USD 1,000,000. The expected cash inflows are as follows:

Project Alpha:

• Year 1: USD 300,000
• Year 2: USD 300,000
• Year 3: USD 300,000
• Year 4: USD 300,000

Project Beta:

• Year 1: USD 400,000
• Year 2: USD 300,000
• Year 3: USD 200,000
• Year 4: USD 100,000

Requirements:

1. Calculate the payback period for both projects.
2. Compute the NPV for both projects at a discount rate of 8%.
3. Determine the IRR for each project.
4. Calculate the ARR for each project.
5. Advise Omega Corporation on which project to select based on the calculated financial metrics.