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A firm needs to decide between two mutually exclusive projects. Project Alpha requires an initial investment...

A firm needs to decide between two mutually exclusive projects. Project Alpha requires an initial investment of 50,000 today and is expected to generate cash flows of 51,000 for the next 3 years. Project Beta requires an intial investment of 85,000 and is expected to generate cash flows of 49,700 for the next 6 years. The cost of capital is 6%. The projects can be repeated with no charge in cash flows. What is the NPV of the project that would be selected based on the replacement chain analysis ? A.) Project Alpha; 158,803 B.) Project Alpha; 159,391 C.) Project Beta; 159,391 D.) Project Beta; 168,954 E.) Project Beta; 173,095

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