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Microsoft considers issuing new operating systems Alpha and Beta. Given that Microsoft can proceed with several operating systems, both projects should be treated as independent

  1. Microsoft considers issuing new operating systems Alpha and Beta. Given that Microsoft can proceed with several operating systems, both projects should be treated as independent projects. Alphas cash flows last for 5 years while Betas cash flows last for 7 years. Calculate the Payback Period for each project. (2.5 points)

    Alpha is 3.2 years, Beta is 3.1 years

    Alpha is 3.1 years, Beta is 3.2 years

    Alpha is 3.0 years, Beta is 3.1 years

    Alpha is 3.1 years, Beta is 3.0 years

    Alpha is 2.9 years, Beta is 3.1 years

  2. Microsoft considers issuing new operating systems Alpha and Beta. Given that Microsoft can proceed with several operating systems, both projects should be treated as independent projects. Alphas cash flows last for 5 years while Betas cash flows last for 7 years. Calculate the NPV for each project . (2.5 points
  3. Alpha is 27.22, Beta is 32.00

    Alpha is 164.36, Beta is 251.00

    Alpha is 71.00, Beta is 95.00

    Alpha is 51.43, Beta is 27.76

    Alpha is 16.92, Beta is 20.96

  4. Microsoft considers issuing new operating systems Alpha and Beta. Given that Microsoft can proceed with several operating systems, both projects should be treated as independent projects. Alphas cash flows last for 5 years while Betas cash flows last for 7 years. Calculate the IRR for Project Beta . (2.5 points)

    24.52%

    16.99%

    22.68%

    16.00%

    23.68%

  5. Microsoft considers issuing new operating systems Alpha and Beta. Given that Microsoft can proceed with several operating systems, both projects should be treated as independent projects. Alphas cash flows last for 5 years while Betas cash flows last for 7 years. Calculate the Profitability Index for each project. (2.5 points)

    Alpha is 0.26, Beta is 0.21

    Alpha is -1.26, Beta is -1.26

    Alpha is -1.21, Beta is -1.26

    Alpha is 1.26, Beta is 1.21

    Alpha is 1.21, Beta is 1.26

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