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Langley Company is considering two capital investments. Both investments have an initial cost of $7,000,000 and total net cash inflows of $16,000,000 over 10 years.

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Langley Company is considering two capital investments. Both investments have an initial cost of $7,000,000 and total net cash inflows of $16,000,000 over 10 years. Langley requires a 20% 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 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 minus sign for a negative NPV. Round the NPV calculations to the nearest whole dollar and the IRR calculations to two decimal places, XX%.) The NPV (net present value) of Plan Alpha is The NPV (net present value) of Plan Beta is The IRR (internal rate of return) of Plan Alpha is %. The IRR (internal rate of return) of Plan Beta is % Which plan, if any, should the company pursue? Data table Requirement 3. After further negotiating, the company can now invest with an initial cost of $6,500,000 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 is $ The NPV (net present value) of Plan Beta is $ The IRR (internal rate of return) of Plan Alpha is % The IRR (internal rate of return) of Plan Beta is %, Which plan, if any, should the company pursue? A. The company should not pursue either plan because the NPV is negative and the IRR is less than the company's required rate of return for both plans. B. The company should not pursue either plan because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. C. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plan, it should pursue Plan Beta because it has the higher NPV and IRR. D. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plan, it should pursue Plan Alpha because it has the lower NPV and IRR

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