Project Alpha vs. Project Beta:

Details	Project Alpha	Project Beta
Initial Investment	$6,000,000	$8,000,000
Expected Life	10 years	10 years
Annual Revenue	$1,000,000	$1,200,000
Annual Operating Expenses	$200,000	$250,000
Depreciation Method	Straight Line	Straight Line

• Cost of Capital: 12%
• Tax Rate: 35%

Requirements:

1. Calculate the Annual Depreciation Expense for both projects.
2. Compute the Annual Net Cash Flows after tax for both projects.
3. Determine the NPV for both projects.
4. Calculate the IRR for both projects.
5. Recommend which project should be selected based on the financial analysis.