Use the table for the question(s)below. Consider the following two projects: -Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale for that decision is to A)invest in project Beta, since IRR_B IRR_A. B)invest in project Alpha, since NPV_Beta 0. D)invest in project Beta, since NPV_Beta NPV_Alpha 0.

Question

Use the table for the question(s)below. Consider the following two projects: -Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale for that decision is to A)invest in project Beta, since IRR_B > IRR_A. B)invest in project Alpha, since NPV_Beta < NPV_Alpha. C)invest in project Beta, since NPV_Beta > 0. D)invest in project Beta, since NPV_Beta > NPV_Alpha> 0.

Quizplus · Accepted Answer

The correct investment decision is to invest in project Beta since it has a higher net present value (NPV) than Alpha (NPVBeta > NPVAlpha) and both projects are mutually exclusive. Additionally, investing in Beta also results in a positive NPV (NPVBeta > 0), which indicates that the investment is expected to generate value for the company.

Use the Table for the Question(s)below