Question $8$

$1$ pts

A firm needs to decide between two mutually exclusive projects. Project Alpha requires an initial investment of $$18,000$ today and is expected to generate cash flows of $$75,000$ for the next $5$ years. Project Beta requires an initial investment of $$91,000$ and is expected to generate cash flows of $$85,700$ for the next $10$ years. The cost of capital is $11\%.$ The projects can be repeated with no change in cash flows. What is the NPV of the project that would be selected based on the replacement chain analysis?

Project Beta; $$450,941$

Project Alpha; $$413,010$

Project Beta; $$413,707$

Project Beta; $$441,921$

Project Alpha; $$413,707$