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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 $37,000 today and is expected to generate cash flows of $31,000 for the next 4 years. Project Beta requires an initial investment of $92,000 and is expected to generate cash flows of $36,400 for the next 8 years. The cost of capital is 10%. The projects can be repeated with no change in cash flows. What is the NPV of the project that would be selected based on the replacement chain analysis?

A) Project Alpha; $103,111

B) Project Beta; $103,111

C) Project Alpha; $105,257

D) Project Beta; $102,191

E) Project Alpha; $112,391

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