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

Consider the following two projects: Project Year 0 Year 1 Year

Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 C/F C/F C/F C/F C/F C/F C/F C/F Alpha - 79 20 25 30 35 40 N/A Beta -80 25 25 25 25 25 25 25 Discount Rate 17% 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 IRRB > IRRA OB. invest in project Beta, since NPV >0. Beta O C. invest in project Alpha, since NPV NPV >0. Beta Alpha

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