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Huber Company is considering two capitat investments. Both investments have an initial cost of $9,000,000 and total net cash inflows of $17,000,000 over 10 years.

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Huber Company is considering two capitat investments. Both investments have an initial cost of $9,000,000 and total net cash inflows of $17,000,000 over 10 years. Huber requires a 16% rate of return on this type of investment. Expected net cash inflows are as follows (Cick the icon to view the expected net cash inflows) Read the reguitements Requirement 1. Use Excel to compute the NPV and IRR of the two plans. Which plan, if any, should the company pursue? (Use parentheses or a mirius sign for a negative NPV Round the NPV calculations to the nearest whole dollar and the IRR calculations to two decimat places, X%.) The NPV (net present value) of Plan Alpha is The NPV (net present valuc) of Plan Beta is The IRR (intemal rate of return) of Plan Apha is The IRR (internai rale of retirn) of Pian Beta is Which pian it any, should the company parsue? Based on the resuils above, the company should pusue because the NPN is and the IRRR is the comparry's required rate of matim Requirement 2. Explan the relabonship between NPV and IfF? Based on this relationship and the companys required rate of refurf are your answers as expected in Requitement 17 Why or why not? The ritemal rate of retum s the interest rate that makes the niet presert value of an invesiment Thus, if an invesiments net present value rs postive, the interiat rate of retum is the requred rase of retum and it the net piesent value is negative, the internal rate of return a Requirement 2. Explain the relationship between NPV and IRR. Based on this relatonship and the company's required rate of retum, are your answers as expected in Requirement 1? Why or why not? The internal rate of return is the interest rate that makes the net present value of an investment Thus, if an ifvestmenr's nel present value is positwe, the internal rate of return is the required rate of return and if the net present value is negative, the internal rate of refum is tequred tate of return. Based on this telationship and the company's required rale of refum, are your answers as expected in Requirement 1 ? Why or wity not? Based on the relatoonship described above, the intemal rate of retuen and nejpresent value calculated in Requirement 1 for the two plans Alpha, the nef present value is and the intemal rate of return is the requited rate of refum. For Plan Beta, the net present value is the intemal rate of return is the required rate of retum Requirement 3. Aher further negotiating, the company can now invest with an intial cost of 58,100,000 for both plans. Recaloulate the NPV and IPR. Which plan, if any should the company purse Use Excel 10 determine your answers. Use parentheses or a minis sign for a negative NPV. Round the NPV calculations to the nearest whole dollar and the IRRR calculations to tro decimal placer 04) B. The company stiould eot pursue eliter plan becarse the NPV is negative and the 1 iga in less than the conquaris required rate of retarn loc bueh plans. Data table

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