Question: Consider projects Alpha and Beta: The opportunity cost of capital is 8%. Suppose you can undertake Alpha or Beta, but not both. Use the IRR

Consider projects Alpha and Beta:

The opportunity cost of capital is 8%.
Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice. (What€™s the incremental investment inAlpha?)

Project Alpha Beta Cash Flows ($) Ci -400,000 +241,000 +293,000 200,000 +131,000 +172,000 IRR (%) 21 31

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