Question: You are evaluating the following mutually exclusive projects for your firm, whose cost of capital is 14%, and all dollar amounts are in millions. 1.

You are evaluating the following mutually exclusive projects for your firm,

You are evaluating the following mutually exclusive projects for your firm, whose cost of capital is 14%, and all dollar amounts are in millions. 1. Verify the NPV and IRR of each project. 2. What is your recommendation? Projec Required Life 10 NCF 1 -n NPV IRR t Return Alpha 12% 10 $50 $20 $63 38.45% years Beta 8% 5 $50 $25 $49.82 41.04%

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