Whitley Company is considering two capital investments. Both investments have an initial cost of $$6,000,000$ and total net cash inflows of $$14,000,000$ over $10$ years. Whitley 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 requirements.

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 vihy not?

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 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.

D$.$ 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.