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, 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?

Based on the results above, the company should pursue _______ because the NPV is _______ and the IRR is ________ the company's required rate of return.

Requirement 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?

The internal rate of return is the interest rate that makes the net present value of an investment ______

Thus, if an investment's net present value is positive, the internal rate of return is _______ the required rate of return and if the net present value is negative, the internal rate of return is _______ the required rate of return.

Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans ________ as expected. For Plan Alpha, the net present value is________ and the internal rate of return is _________ the required rate of return. For Plan Beta, the net present value is _________ and the internal rate of return is _________the required rate of return.

Requirement 3. After further negotiating, the company can now invest with an initial cost of $ 8 comma 100 comma 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?

Barlow Company is considering two capital investments. Both investments have an initial cost of $9,000,000 and total net cash inflows of $17,000,000 over 10 years. Barlow requires a 16% rate of return on this type of investment. Expected net cash inflows are as follows Data Table f the two plans. Which plan, if any, should the negative NPV. Round the NPV calculations to cimal places. X.XX96.) Year Plan Alpha Plan Beta 11,700,000 S 1,700,000 2.400,000 3.100,000 2.400,000 1,700,000 ,600,000 1,700,000 1,700,000 1,700,000 1.700.000 1,700,000 4 1700.000 1.300,000 1,300,000 700,0001,000,000 700.000 1.100.000 S 17000,000 S 17.000.000 1,700.000 1,700,000 the next question 10 Total