Consider projects Alpha and Beta: Project Alpha Beta Cash Flows ($) CO C1 -393,000 258,000 -194,000 139,500 C2 192,992 87,000 IRR (%) 10 12 The opportunity cost of capital is 8%. Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice. (Hint: What's the incremental investment in Alpha?) Which project did you choose? O Alpha O Beta