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Project Alpha has an IRR of 12 percent and Project Beta has an IRR of 14 percent. The cost of capital is 8 percent. The
Project Alpha has an IRR of 12 percent and Project Beta has an IRR of 14 percent. The cost of capital is 8 percent. The projects are mutually exclusive.
What should the firm choose?
Please choose the following:
-The firm should choose project A.
-The firm should choose project B.
-The firm should choose both projects.
-The firm should choose neither project.
-With the given data, it is not possible to determine which project the firm should choose.
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