Barlow Company is considering two capital investments. Both investments have an initial cost of $7,000,000 and...

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Barlow Company is considering two capital investments. Both investments have an initial cost of $7,000,000 and total net cash inflows of $14,000,000 over 10 years. Barlow requires a 18% 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 The NPV (net present value) of Plan Beta is net cash inflows of $14,000,000 over 10 years. Barlow requires a 1 Expected net cash inflows are as follows: Re (Click the icon to view the expected net cash inflows.) Data table - Re Year Plan Alpha Plan Beta cor wh Year 1 $ 1,400,000 $ 1,400,000 Year 2 1,400,000 2,100,000 Th Year 3 1,400,000 2,800,000 Year 4 1,400,000 2,100,000 Th Year 5 1,400,000 1,400,000 Year 6 1,400,000 700,000 Year 7 1,400,000 500,000 Year 8 1,400,000 300,000 Year 9 1,400,000 100,000 1,400,000 2,600,000 Year 10 s ex $ 14,000,000 $ 14,000,000 Total Requirements 1. Use Excel to compute the NPV and IRR of the two plans. Which plan, if any, should the company pursue? 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? 3. After further negotiating, the company can now invest with an initial cost of $6,200,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? Print Done - fa Barlow Company is considering two capital investments. Both investments have an initial cost of $7,000,000 and total net cash inflows of $14,000,000 over 10 years. Barlow requires a 18% 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 The NPV (net present value) of Plan Beta is net cash inflows of $14,000,000 over 10 years. Barlow requires a 1 Expected net cash inflows are as follows: Re (Click the icon to view the expected net cash inflows.) Data table - Re Year Plan Alpha Plan Beta cor wh Year 1 $ 1,400,000 $ 1,400,000 Year 2 1,400,000 2,100,000 Th Year 3 1,400,000 2,800,000 Year 4 1,400,000 2,100,000 Th Year 5 1,400,000 1,400,000 Year 6 1,400,000 700,000 Year 7 1,400,000 500,000 Year 8 1,400,000 300,000 Year 9 1,400,000 100,000 1,400,000 2,600,000 Year 10 s ex $ 14,000,000 $ 14,000,000 Total Requirements 1. Use Excel to compute the NPV and IRR of the two plans. Which plan, if any, should the company pursue? 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? 3. After further negotiating, the company can now invest with an initial cost of $6,200,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? Print Done - fa