You work for the 3T company, which expects to earn at least 15 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
Y0	0	217,000	(217,000	)	Y0	0	209,000	(209,000	)
Y1	7,000	190,000	(183,000	)	Y1	2,200	130,000	(127,800	)
Y2	150,000	0	150,000		Y2	150,000	0	150,000
Y3	220,000	30,000	190,000		Y3	220,000	30,000	190,000
Y4	191,000	0	191,000		Y4	167,000	0	167,000
Y5	205,000	38,000	167,000		Y5	205,000	46,000	159,000
Y6	197,000	0	197,000		Y6	197,000	0	197,000
Y7	100,000	30,000	70,000		Y7	100,000	30,000	70,000
Total	1,070,000	505,000	565,000		Total	1,041,200	445,000	596,200

The NPV for Omega is
The NPV for Alpha is
The better project is