Question: Consider projects Alpha and Beta Project Alpha Beta Cash Flows ($) Ce Ci -395,000 261, eee -191,000 141,000 C2 180,989 72,000 IRR (%) 8 9

Consider projects Alpha and Beta Project Alpha Beta Cash Flows ($) Ce Ci -395,000 261, eee -191,000 141,000 C2 180,989 72,000 IRR (%) 8 9 The opportunity cost of capital is 8% Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice. (Hint: What's the incremental investment in Alpha?) Which project did you choose? Alpha Beta

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