Question: Consider the following two projects: year 0 year1 year2 year3 year4 year5 year6 year7 Discount rate Project Cf Cf CF CF CF CF CF CF
Consider the following two projects:
| year 0 | year1 | year2 | year3 | year4 | year5 | year6 | year7 | Discount rate | ||
| Project | Cf | Cf | CF | CF | CF | CF | CF | CF | ||
| Alpha | -79 | 20 | 25 | 30 | 35 | 40 | na | na | 15% | |
| Beta | -80 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 16% |
What is the NPV for project alpha?
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