Consider Alpha and Beta projects: Cash Flows, $ Project C0 C1 C2 IRR (%) Alpha 400,000 +241,000
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Consider Alpha and Beta projects: Cash Flows, $ Project C0 C1 C2 IRR (%) Alpha –400,000 +241,000 +293,000 21 Beta –200,000 +131,000 +172,000 31 The opportunity cost of capital is 8%. Let's say you can take on Alpha or Beta, but not both. A. What is the NPV for each project? (Do not round up intermediate calculations. Round your answers to 2 decimal places.) Project NPV Alpha $ Beta $ b. Which project did you choose? and why?
Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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