Which of the two projects should beta invest in

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Reference no: EM132061236

Beta Co. is considering two mutually exclusive projects to invest in per the Cash

Flows and IRRs below. The Discount Rate (MARR) for Beta Corp. is 20% APR

compounded annually.

Project #1

Year: 0 I 2

Cash Flow: -$14,000 +$17,000 +$1,400

IF.R: 29.17Yo

Project #2

Year: 0 1 2

Cash Flow: -$10,000 +$13,000 +$400

IRR: 33.01%

Which of the two Projects (if any) should Beta invest in?

(Show your work and the basis for your answer) Please!

Reference no: EM132061236

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