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Two Projects Are Under Consideration by the Same Company at the Same

Question 55

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Two projects are under consideration by the same company at the same time. Project Alpha has a NPV of $20 million and an estimated useful life of 10 years. Project Beta has a NPV of $12 million and also an estimated useful life of 10 years. What should the company's decision be?
a) if the projects involve unrelated expansion decisions or
b) if the projects are mutually exclusive because they would have to occupy the same space?

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If the projects involve unrelated expans...

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