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Question
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 bea) if the project's involve unrelated expansion decisions or
b) if the project's are mutually exclusive because they would have to occupy the same space?
Answer
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