Question: Below are the net cash flows for two mutually exclusive projects Alpha and Beta. If the required return is 12% pa, which project/s should be

Below are the net cash flows for two mutually exclusive projects Alpha and Beta. If the required return is 12% pa, which project/s should be selected, assuming the projects can be repeated? Explain your choice. 

    

Project        Alpha

Y0 -            (2000)

Y1 -             1600

Y2 -             1600

  

Project      Beta

 Y0 -          (4800)

Y1 -           1700

Y2 -           1700

Y3 -           1700

Y4 -          1700

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To determine which project to select well calculate the Net Present Value NPV for both projects NPV ... View full answer

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