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Vinson 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.

Vinson 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. Vinson 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. 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 $(394,621) The NPV (net present value) of Plan Beta is $ 338,806 The IRR (internal rate of return) of Plan Alpha is The IRR (internal rate of return) of Plan Beta is % % Data table Year Plan Alpha Plan Beta Year 1 $ 1,700,000 $ 1,700,000 Year 2 1,700,000 2,300,000 Year 3 1,700,000 2,900,000 Year 4 1,700,000 2,300,000 Year 5 1,700,000 1,700,000 Year 6 1,700,000 1,600,000 Year 7 1,700,000 1,200,000 Year 8 1,700,000 800,000 Year 9 1,700,000 400,000 1,700,000 2,100,000 Year 10 $ 17,000,000 $ 17,000,000 Total

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