Consider projects Alpha and Beta: Cash Flows ($) C₁ Co C₂ Project Alpha -385,000 246,000 272,995 22 Beta -195,000 133,500 147,000 28 IRR (8) 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?) Which project did you choose? Which project did you choose?

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