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6. (10 pts) Two mutually exclusive projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%.

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6. (10 pts) Two mutually exclusive projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Use the replacement chain method to determine which of the two projects should be selected: Beta Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Alpha -$125,000-$55,000 $35,000 $10,000 $35,000 $10,000 $35,000 $10,000 $15,000 $15,000 $15,000

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