Question: Consider the following two projects: C/F Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount C/F

Consider the following two projects: C/F Project Year 0 Year 1

Consider the following two projects: C/F Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount C/F C/F C/F C/F C/F C/F C/F Rate Alpha -79 20 25 30 35 40 N/A N/A 16 Beta -80 25 25 25 25 25 25 25 15 Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale for that decision is to O a. invest in project Beta, since NPVBeta > NPVAlpha > 0 O b.invest in project Beta, since IRRB > IRRA O c. invest in project Alpha, since NPVBeta 0

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