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2)Project Alpha and Beta have 4 year timelines. Project Alpha has an initial investment of $100,000 and cash inflows of $60,000, $50,000, $40,000 and $40,000.

  • 2)Project Alpha and Beta have 4 year timelines. Project Alpha has an initial investment of $100,000 and cash inflows of $60,000, $50,000, $40,000 and $40,000. Project Beta has an initial investment of $75,000 and cash inflows of $50,000, $40,000, $30,000, and $30,000. Calculate the IRR of the differential cashflows between the two projects at which the company will be indifferent (Show all necessary calculations.) (25 marks)


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