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!