Question: Use the table for the question(s) below. Consider the following two projects: Project Year 0 C/F Year 1 C/F Year 2 C/F Year 3 C/F

Use the table for the question(s) below. Consider the following two projects: Project Year 0 C/F Year 1 C/F Year 2 C/F Year 3 C/F Year 4 C/F Year 5 C/F Year 6 C/F Year 7 C/F Discount Rate Alpha 79 20 25 30 35 40 N/A N/A 15% Beta 80 25 25 25 25 25 25 25 16% Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rational for that decision is to:

A. invest in project Beta since IRRB > IRRA.

B. invest in project Beta since NPVBeta > 0.

C. invest in project Alpha since NPVBeta < NPVAlpha.

D. invest in project Beta since NPVBeta > NPVAlpha > 0.

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