Question: Year Project Alpha Cash Flow Project Beta Cash Flow 0 -$25,000 -$50,000 1 $8,000 $15,000 2 $10,000 $18,000 3 $12,000 $20,000 4 $14,000 $25,000 5

Year

Project Alpha Cash Flow

Project Beta Cash Flow

0

-$25,000

-$50,000

1

$8,000

$15,000

2

$10,000

$18,000

3

$12,000

$20,000

4

$14,000

$25,000

5

$16,000

$30,000

Given a discount rate of 7%, calculate the NPV for both projects and determine which project is more viable.

Requirements:
  1. Calculate the NPV of Project Alpha.
  2. Calculate the NPV of Project Beta.
  3. Determine which project is more viable.

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