Consider projects Alpha and Beta:
Cash Flows ($) | ||||
Project | C0 | C1 | C2 | IRR(%) |
Alpha | -400,000 | +241,000 | +293,000 | 21 |
Beta | -200,000 | +131,000 | +172,000 | 31 |
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?)
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.