Buckner 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. Buckner requires a 16 % rate of return on this type of investment. Expected net cash inflows are as follows:

  

 

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Year Plan Alpha Plan Beta 1 1,700,000 S 1,700,000 1,700,000 2,500,000 1,700,000 3,300,000 4 1,700,000 2,500,000 1,700,000 1,700,000 1,700,000 1,100,000 1,700,000 800,000 8 1,700,000 500,000 9. 1,700,000 200,000 2. 3. 5. O7 Year Plan Alpha Plan Beta 1 1,700,000 S 1,700,000 1,700,000 2,500,000 1,700,000 3,300,000 4 1,700,000 2,500,000 1,700,000 1,700,000 1,700,000 1,100,000 1,700,000 800,000 8 1,700,000 500,000 9. 1,700,000 200,000 2. 3. 5. O7