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need help on homework note: the requirements are done in partial segments in steps n, if any, should the company pursue? (Use parentheses or a
need help on homework
n, if any, should the company pursue? (Use parentheses or a minus sign for a negative NPV Round iData Table i Requirements . X Alpha 600,000 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? 600,000 600,000 B00,000 600,000 600,000 S00,000 B00,000 Print Done B00,000 600,000 10 16,000,000 Total nd total net cash inflows of $16,000,000 over 10 years. Foreman re - X i Data Table pursue Rc Plan Alpha Year Plan Beta 1 1,600,000 $ 1,600,000 2 1,600,000 2,300,000 1,600,000 3,000,000 1,600,000 2,300,000 1,600,000 1,600,000 6 1,600,000 1,200,000 7 1,600,000 1,100,000 8 1,600,000 1,000,000 1,600,000 900,000 1,600,000 1,000,000 10 $ Total 16,000,000 16,000,000 $ Print Done 4 LO 3 of 3 (0 complete) P26-38B (similar to) Foreman Company is considering two capital investments Both investments have an initial cost of $10,000,000 and total net cash inflows of $16,000,000 over 10 y are as follows (Click the iCon to view the expected net cash inflows.) Read the requirements Data Table Requirement 1. Use Excel to compute the NPV and IRR of the two plans Which plan, if any, should the company pursue? (Use parenthese two decimal places, XXX %) The NPV (net present value) of Plan Alpha is S Year Plan Alp 1 1,60 The NPV (net present value) of Plan Beta is S 2 1,60 3 1,600 4 1,600 5 1,600 6 1,600 7 1,600 8 1,600 1,600 C 1,600 C 10 16,000,0 Total Enter any number in the edit fields and then click Check Answer. Print 7 parts remaining Clear All Type here to search 3 of 3 (0 complete) cad oc 10 o 'oro aIOnC MH Question Help cost of $10,000,000 and total net cash inflows of $16,000,000 over 10 years Foreman requires a 10% rate of return on this type of investment Expected net cash inflows 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 fo - X Data Table Year Plan Alpha Plan Beta 1 S 1,600,000 S 1,600,000 1,600,000 2,300,000 3 1,600,000 3,000,000 4 1,600,000 2,300,000 5 1,600,000 1600,000 6 1,600,000 1200,000 7 1,600,000 1,100,000 8 1,600,000 1,000,000 9 1,600 000 900,000 1,600,000 1,000,000 10 16,000,000 S 16,000,000 Total Clear Al Check Answer 12:44 PM 11/30/2019 note: the requirements are done in partial segments in steps
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