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Consider projects Alpha and Beta: Cash Flows, $ Project C 0 C 1 C 2 IRR (%) Alpha 398,000 +243,000 +295,000 22 Beta 198,000 +132,000
| Consider projects Alpha and Beta: |
| Cash Flows, $ | ||||
| Project | C0 | C1 | C2 | IRR (%) |
| Alpha | 398,000 | +243,000 | +295,000 | 22 |
| Beta | 198,000 | +132,000 | +173,000 | 33 |
| The opportunity cost of capital is 9%. |
| Suppose you can undertake Alpha or Beta, but not both. |
| a. | What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Project | NPV |
| Alpha | $ |
| Beta | $ |
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The Venture Capital Investment Process
Authors: Darek Klonowski
1st Edition
0230612881, 023011007X, 9780230612884, 9780230110076
