Consider Projects Alpha and Omega. The cost of capital for the projects is 10.00%

ALPHA OMEGA

($1,350,000)($1,000,000)

400,000 300,000

400,000 300,000

400,000 300,000

400,000 300,000

400,000 300,000

a.Calculate the NPVandIRR for both projects.

ALPHA

OMEGA

NPV

IRR

b.If the projects are independent, which project(s) would you accept?Why?

c.If the projects are mutually exclusive, which project(s) would you accept?Why?

d.Calculate the crossover rate for projects Alpha and Omega