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

Consider the following two projects: C/F Project Year 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 Rate Alpha -79 20 25 30 35 40 NA NA 16% Beta - 80 25 25 25 25 25 25 25 15% C/F 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 NPV > NPV Beta Alpha >0. O B. invest in project Alpha, since NPV 0. Beta OD. invest in project Beta, since IRRE > IRRA

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