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Two mutually exclusive projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Calculate the NPV
Two mutually exclusive projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Calculate the NPV and IRR of Alpha and Beta and determine which of the two projects should be selected:
Alp 0123456 ha Beta Year0 $15,000$35,000 Year 1 $5,000 $10,000 Year2 $5,000 $10,000 Year3 $5,000$10,000 Year4 $5,000$10,000 Year5 $5,000 $10,000 Year6 $5,000 $10,000Step by Step Solution
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