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1. Consider the following cash flows (C/F) for two projects, Alpha and Beta: Project Alpha Beta Year 0 Year 1 Year 2 Year 3 C/F

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1. Consider the following cash flows (C/F) for two projects, Alpha and Beta: Project Alpha Beta Year 0 Year 1 Year 2 Year 3 C/F C/F C/F C/F 20 30 25 25 -80 -80 25 25 Year 4 Year 5 Year 6 C/F C/F C/F 35 40 25 25 N/A 25 (a) Calculate the net present value (NPV) and IRR of Alpha and Beta. Year 7 C/F N/A 25 Discount Rate 15% 16%

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