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Consider projects Alpha and Beta: Project Alpha Beta Cash Flows ($) C1 C2 IRR (%) -397,000 244,000 280,997 20 -197,000 132,500 157,000 29 The opportunity
Consider projects Alpha and Beta: Project Alpha Beta Cash Flows ($) C1 C2 IRR (%) -397,000 244,000 280,997 20 -197,000 132,500 157,000 29 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? Alpha Beta
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