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Buckner ompany is considering two cap tal net cash inflows are as follows: investments have an i tial cost of $10 000 000 and total net cash inflows o $17 000 000 over 10 years. Buckner requires a 12% tum on this type of investment. Expected est en o e o (Click the icon to view the expected net cash inflows.) Read the requirements. Data Table Requirement 1. Use Excel to compute the NPV and IRR of the two plans. Which plan, if any, should the company pursue? IRR calculations to two decimal places, X.XX%.) he NPV calculations to the nearest whole dollar and the Year Plan Alpha Plan Beta The NPV (net present value) of Plan Alpha is $ 1 1,700,0001,700,000 2,300,000 2,900,000 2,300,000 1,700,000 1,600,000 1,200,000 800,000 400,000 2,100,000 $17,000,000 17,000,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 The NPV (net present value) of Plan Beta is S 10 Print Done

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Answes Alpha Beta Net Present Value @ 12% |-394.621($394.621) | $338.806 Inteinal Rate of Retun Rank 11.03% 12.94% ecision: company Should Prsue Plan Beta since it has the more IRR Rate than the Alpha Data: Two Plans Require the initial cost of $10,000,000 both Annual Net Cash flows Required rate of return 12% Year Plan Alpha Plan Beta 1,700,000 1,700,000 1,700,0002,300,000 1,700,000 2,900,000 1,700,0002,300,000 1,700,000 1,700,000 1,700,0001,600,000 1,700,000 1,200,000 800,000 400,000 1,700,0002,100,000 17,000,000 17,000,000 2 3 4 5 6 1,700,000 1,700,000 9 10 Total

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