Question: Two mutually exclusive projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Use the replacement

Two mutually exclusive projects, Alpha and Beta have free cash flows listed below. The firm has a cost of capital of 15%. Use the replacement chain method to determine which of the two projects should be selected: Alpha Beta Year 0 -$125,000 -$55,000 Year 1 $35,000 $10,000 Year 2 $35,000 $10,000 Year 3 $35,000 $10,000 Year 4 $15,000 Year 5 $15,000 Year 6 $15,000

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