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of return on this type of investment Expected Buckner Company is considering two capital investments Bath investments have an initial cost of $7.000.000 and total

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of return on this type of investment Expected Buckner Company is considering two capital investments Bath investments have an initial cost of $7.000.000 and total releash Infows of $16000000 over 10 years. Buckner requires a 20% net caninows are as follow ick the convierte expected cash flows) M 1 Data Table The internal te ofretum of Plan Betis 3 2280 % Which plan, ilan should the company pursue? Based on the results above, the company should pursue Plan Bela because the NPV is positive and the IRR is greater than the company's required rate of return Requirement 2. Explain the relationship between NPV and IRR. Based on this reasonship and the company's required role of retum are your as expected in Requirement 17 Why or why The internal rate of reum is the interest rate that makes the nel present value of an investment equal to zero. Thus, annesment's net present value is positive the inter rate of return and the nel present value is negative, the internal rate of return is less than the required of retum Based on this onship and the company's required rule of retum, are your answers as expected in Requirement 17 Why or why not? Year 1 the nel presenta Based on the relationship described above the imale of retum presenta un calculated in Regement for the two e x pected For Plan Alp required rate of return For Plan Bethenes present value is positive and internal ofretum greater than required rate ofretum Pan Alpha $ 1.600.000 $ 1000000 100.000 1.000.000 1.800,000 1.000.000 100.000 100.000 1600.000 1600.000 Planeta 1500,000 2 200 000 2.000.000 2.200.000 1,600.000 1.500.000 100.000 1.100.000 500 000 0 000 16.000.000 Requirementer further mission for an in the company can now be with m o st of $6.500.000 for bon plans Racal NPV and IRR Which NPV. Round the NPV actions to the nearest Whold and Rations to two decades, XXX) should the company one The NPV in present value of Pana s To $ 10.000.000 The NPV et present Value of Plan Betais

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