EX$2-4($Algo$)$ You work for the $3$T company, which...

You work for the $3$T company, which expects to earn at least $14$ percent on its investments. You have to choose between two similar projects. Below is the cash flow information for each project.

Calculate the NPV of each project. $($Use the NPV function in Excel to solve this problem.$)$

Which of the two projects would you fund if the decision is based only on financial information and you could only choose one of the projects?

Omega Alpha

Year Inflow Outflow Netflow Year Inflow Outflow Netflow

Y$00212,000(212,000)$ Y$00222,000(222,000)$

Y$10160,000(160,000)$ Y$10200,000(200,000)$

Y$2150,0000150,000$ Y$2150,0000150,000$

Y$3220,00030,000190,000$ Y$3220,00030,000190,000$

Y$4176,0000176,000$ Y$4206,0000206,000$

Y$5205,00043,000162,000$ Y$5205,00033,000172,000$

Y$6197,0000197,000$ Y$6197,0000197,000$

Y$7100,00030,00070,000$ Y$7100,00030,00070,000$

Total $1,048,000475,000573,000$ Total $1,078,000515,000563,000$