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Problem 2 (5 marks): Consider the following two projects: Year Year 1 Year 2 Year 3 Year 4 Year 5 Discount Project C FCFC/ FC/

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Problem 2 (5 marks): Consider the following two projects: Year Year 1 Year 2 Year 3 Year 4 Year 5 Discount Project C FCFC/ FC/ FC/ FC/F Rate Alpha -SD 20 25 30 35 40 15% Beta -80 2 5 25 25 25 25 16% a) Which project would you choose based on the NPV rule? b) Draw a graph showing the IRR, if IRR for project Alpha is 20% and IRR for project Betais 22%

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