Question: 25 17% Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount

25 17% Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount C/F CIF C/F C/F C/F C/F C/F C/F Rate Alpha -79 20 30 35 40 NA NIA Beta - 80 25 25 25 25 25 25 25 15% Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale for that decision is to O A. invest in project Alpha, since NPV, 0. Beta c. invest in project Beta, since NPV, > NPV >0 Beta Alpha D. invest in project Beta, since IRR > IRRA

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