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Consider projects Alpha and Beta: Cash Flows, $ Project C 0 C 1 C 2 IRR (%) Alpha -393,000 +258,000 +310,000 28 Beta -194,000 +139,500
| Consider projects Alpha and Beta: |
| Cash Flows, $ | ||||
| Project | C0 | C1 | C2 | IRR (%) |
| Alpha | -393,000 | +258,000 | +310,000 | 28 |
| Beta | -194,000 | +139,500 | +180,500 | 39 |
| The opportunity cost of capital is 9%. |
| Suppose you can undertake Alpha or Beta, but not both. |
| 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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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
10th Edition
9780073530734, 77404890, 73530735, 978-0077404895
