Question: Problem 5-9 IRR rule Consider projects Alpha and Beta: Project Alpha Beta Cash Flows (5) Ce Ci -390,000 251,000 - 199,000 136,000 C2 229,999 122,000

Problem 5-9 IRR rule Consider projects Alpha and Beta: Project Alpha Beta Cash Flows (5) Ce Ci -390,000 251,000 - 199,000 136,000 C2 229,999 122,000 IRR (%) 14 24 The opportunity cost of capital is 8%. Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice (Hint: What's the incremental investment in Alpha?) Which project did you choose? Beta Alpha

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