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Alpha is considering Project A and Project B both with cost of capital 6%. . A: -$10,000, $3,500, $3,500, $3,500, $3,500 . B: -$2,000, $743,
Alpha is considering Project A and Project B both with cost of capital 6%. . A: -$10,000, $3,500, $3,500, $3,500, $3,500 . B: -$2,000, $743, $743, $743, $743 Calculate the NPV and IRR of each. Are they acceptable? Sketch the NPV profiles on the same axes. The projects are mutually exclusinve. Which is better? Explain in both NPV and IRR terms.
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