Question: HW Ch 5 Consider projects Alpha and Beta: Cash Flows, $ Project C 0 C 1 C 2 IRR (%) Alpha 400,000 +241,000 +293,000 21
HW Ch 5
| Consider projects Alpha and Beta: |
| Cash Flows, $ | ||||
| Project | C0 | C1 | C2 | IRR (%) |
| Alpha | 400,000 | +241,000 | +293,000 | 21 |
| Beta | 200,000 | +131,000 | +172,000 | 31 |
| The opportunity cost of capital is 8%. |
| Suppose you can undertake Alpha or Beta, but not both. |
| a. | What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Project | NPV |
| Alpha | $ |
| Beta | $ |
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