Question: 10. (10 pts) Two mutually exclusive projects, Alpha and Beta have free cash flows listed below with unequal lives. The firm has a cost of
10. (10 pts) Two mutually exclusive projects, Alpha and Beta have free cash flows listed below with unequal lives. The firm has a cost of capital of 15%. Use the replacement chain method to determine which of the two projects should be selected: Alpha Beta Year 0 ($18,543) ($45,664) Year 1 $5,000 $20,000 Year 2 $5,000 $20,000 Year 3 $5,000 $20,000 Year 4 $5,000 Year 5 $5,000 Year 6 $5,000
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