Omega Alpha

Inflow Outflow Net flow Inflow Outflow Net flow

Year Year
0 0 221,000 -221,000 0 0 213,000 -213,000
1 5,000 190,000 -185,000 1 4,000 170,000 -166,000
2 150,000 0 150,000 2 150,000 0 150,000
3 220,000 30,000 190,000 3 220,000 30,000 190,000
4 203,000 0 203,000 4 179,000 0 179,000
5 205,000 34,000 171,000 5 205,000 42,000 163,000
6 197,000 0 197,000 6 197,000 0 197,000
7 100,000 30,000 70,000 7 100,000 30,000 70,000
Total 1,080,000 505,000 575,000 Total 1,055,000 485,000 570,000
Rate of Return 12%

NPV for Omega 226,149.70

NPV for Alpha 231,322.13
The better Project Alpha