i Data Table Requirements Year 1 Plan Alpha $ 1,700,000 $ 1,700,000 Plan Beta 1,700,000 2,300,000 1. Use Excel to compute the NPV and IRR of the two plans. Which plan, if any, should the company pursue? 2. Explain the relationship between NPV and IRR. Based on this relationship and the company's required rate of return, are your answers as expected in Requirement 1? Why or why not? 3. After further negotiating, the company can now invest with an initial cost of $9,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? 1,700,000 2,900,000 o ovo o AW N + 1,700,000 1,700,000 1,700,000 1,700,000 2,300,000 1,700,000 1,600,000 1,200,000 Print Done 800,000 u 1,700,000 1,700,000 1,700,000 400,000 2,100,000 17,000,000 alculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to dete lations to two decimal places, X.XX%.) $ 17,000,000 $ Total Hayes Company is considering two capital investments. Both investments have an initial cost of $10,000,000 and total net cash inflows of $17,000,000 over 10 years. Hayes requires a 12% rate of return on this type of investment. Expected net cash inflows are as follows: (Click the icon to view the expected net cash inflows.) Read the requirements The IRR (internal rate of return) of Plan Beta is S 12.94% Which plan, if any, should the company pursue? Based on the results above, the company should pursue Plan Beta because the NPV is positive and the IRR is greater than the company's required rate of retum. Requirement 2. Explain the relationship between NPV and IRR. Based on this relationship and the company's required rate of retum, are your answers as expected in Requirement 17 Why or why not? Thus, if an investment's net present value is positive, the intemal rate of return is greater than the The internal rate of retum is the interest rate that makes the net present value of an investment equal to zero. required rate of return and if the net present value is negative, the internal rate of return is less than the required rate of return. Based on this relationship and the company's required rate of return, are your answers as expected in Requirement 1? Why or why not? Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans are as expected. For Plan Alpha, the net present value is negative and the internal rate of return is less than the required rate of return. For Plan Beta, the net present value is positive and the internal rate of return is greater than the required rate of returri. Requirement 3. After further negotiating, the company can now invest with an initial cost of $9,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine your answers. Use parentheses or a minus sign for a negative NPV. Round the NPV calculations to the nearest whole dollar and the IRR calculations to two decimal places, X.XX%.) The NPV (net present value) of Plan Alpha iss The NPV (net present value) of Plan Betals $ Enter any number in the edit fields and then click Check