Capital Investment Decisions Learning Objective 4 ,. Plan 8rta 22.89% RR P26-38B g Excel to solve for NPV and IRR Hamsoo Compuany is considering tuo capital imesttxents Both imestments beave an initial cost of $7,0X00,000 and sotal net cash intioas o $16000,000ver 10 yeans Hamilton requines s 20% raoc of return oen ths type of imestment. Expected net cash 3. Plan Alpha S207955 inflous are as tollows: Year Plan Alpha Man Beta 11,600,000 1,600000 1,000.00 2,20,000 3 1,600.002.8000 2,200,000 5 1,600,0001,600.000 6 1,600,0001,500,000 71,600.0001.300.000 1,100.000 1,600,000 10 1,600,000 Total 16,000,000 16,000,000 Requirements 1. Use Excel to compute the NPV and TRR of the tow plans. Which plan, if anv should the company puarsues 2. Explain the relaioeship between NPV and IRR. ased on this nelationship and the company's reqpaired rate of retum, are your answers as expected in Requirement 1: Why or why not? 3. After further negotiating, the company can nooo invest with an initial cost of 56,500,000. Recalcalate the NPV and IRR, Which plan, f any, shoukd the cocopary pussue