Consider projects Apha and Beta Cash Flows ($) Project Year 0 Year 1 Year 2 IRR ( ) Alpha 200,000 120,500 146,500 20 86 Beta 100,000 65,500 86,000 31 The hurdle rate (i e , opportunity cost of capital) is 8 00 Suppose that you can undertake Alpha or Beta, but not both Which, if any, project should be undertaken Alpha Beta Neither project

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Question: Consider projects Apha and Beta: Cash Flows ($) Project Year 0 Year 1 Year 2 IRR (%) Alpha -200,000 +120,500 +146,500 20.86 Beta -100,000 +65,500

Consider projects Apha and Beta:

Cash Flows ($)
Project	Year 0	Year 1	Year 2	IRR (%)
Alpha	-200,000	+120,500	+146,500	20.86
Beta	-100,000	+65,500	+86,000	31

The hurdle rate (i.e., opportunity cost of capital) is 8.00%. Suppose that you can undertake Alpha or Beta, but not both. Which, if any, project should be undertaken?

Alpha

Beta

Neither project

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