Question: 32. A firm needs to decide between two mutually exclusive projects. Project Alpha requires an initial investment of $29,000 today and is expected to generate

32. A firm needs to decide between two mutually exclusive projects. Project Alpha requires an initial investment of $29,000 today and is expected to generate cash flows of $43,000 for the next 3 years. Project Beta requires an initial investment of $60,000 and is expected to generate cash flows of $45,500 for the next 6 years. The cost of capital is 11%. The projects can be repeated with no change in cash flows. What is the NPV of the project that would be selected based on the replacement chain analysis?

Project Beta; $140,439

Project Beta; $132,489

Project Alpha; $132,489

Project Beta; $140,928

Project Alpha; $131,709

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