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Ed has to choose between Project Alpha and Project Omega, which are mutually exclusive. Project Alpha has an initial cost of $28,000 and an IRR

Ed has to choose between Project Alpha and Project Omega, which are mutually exclusive. Project Alpha has an initial cost of $28,000 and an IRR of 16%. Project Omega has an initial cost of $47,000 and an IRR of 12%. Explain why the selection of the project with the higher IRR could be a faulty decision.

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