You are the manager of the "New Products" division of a firm considering a group of investment projects for the upcoming fiscal year. The CEO is interested in maximizing profits and wants to pursue the project or set of projects that return the highest expected profits to the firm. Three potential alternatives have been proposed, including the following estimated financial projections:

Which set of projects would you recommend if your firm could only spend $70 million in upfront costs on investments and if the investment in Alpha project decreased the upfront costs required for each of the remaining projects by half?

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Alpha Project Upfront Costs $60 million Expected Revenues $85 million Beta Project Upfront Costs $20 million $16 million Expected Revenues Gamma Project Upfront Costs $30 million Expected Revenues $60 million