Hyde Company is considering two capital investments. Both investments have an initial cost of $6,000,000 and total net cash inflows of S14,000,000 over 10 years. Hyde requires a 20% rate of return on this type of investment Expected net cash inflows are as follows: E (Click the icon to view the expected net cash inflows.) Read the requirements - X CHEER Data table company pursu the NPV calculations to the nearest -X Requirements Year Plan Alpha Plan Beta Year 1 $ S 1,400,000 $ 1,400,000 Year 2 2 1.400.000 1.700.000 Year 3 1,400,000 2,000,000 Year 4 1,400,000 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 retum, 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 $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? 1,700,000 1,400,000 Year 5 1,400,000 1.400.000 Year 6 1,000,000 1,400,000 700.000 Year 7 Year 8 1,400,000 400,000 B hd the IRR is Year 9 1,400,000 1,400.000 100,000 3,600,000 R Year 10 Print Done pany's required Why or why not? $ 14,000,000 $ Total 14,000,000 itive, the internal rate of return is , rogoroor voor roen is Based on this relationship and the company's required rate of return, are your answers as expected in Requirement 1? Print Done Based on the relationship described above, the internal rate of return and net present value calculated in Requirement present value is and the Hyde 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. Hyde requires a 20% rate of return on this type of investment. Expected net cash inflows are as follows: E: (Click the icon to view the expected net cash inflows.) X 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? (Use parentheses or a minus sign whole dollar and the IRR calculations to two decimal places, X.XX%.) Plan Beta Year Year 1 1 Year 2 Plan Alpha $ 1,400,000 $ The NPV (net present value) of Plan Alpha is 1.400.000 1,400,000 1.700.000 1,400,000 The NPV (net present value) of Plan Beta is Year 3 2,000,000 Year 4 1,400,000 1,700.000 1,400.000 The IRR (internal rate of return) of Plan Alpha is % Year 5 1,400,000 Year 6 1,400,000 1,400,000 1,000,000 700.000 The IRR (internal rate of return) of Plan Beta is % Year 7 Which plan, if any, should the company pursue? Year 8 1,400,000 1,400,000 1,400,000 400,000 100.000 Year 9 Based on the rosults above, the company should pursue because the NPV is and the IRR IS the company's roquired 3,600.000 Year 10 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 ex $ 14,000,000 $ 14.000.000 Total The internal rate of return is the interest rate that makes the net present value of an investment Thus, if an investmer the required rate of return the required rate of return and if the net present value is negative, the internal rate of return is Based on this relationship and the company's required rate of return, are your answers as expected in Requirement 1? Why or why not? Print Done Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans as expect Hyde 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. Hyde 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 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 ar elationship and the company's required rate of return, are your answers as expected in Requirement 1? Why or why not? The Internal rate of return is the Interest rate that makes ti the required rate of return and if the net pn Plan Alpha an Investment the internal rate of return is Thus, If an Investment's net present value is positive, the Internal rate of retum is the required rate of return. Plan Beta Based on this relationship and the company's required ral swers as expected in Requirement Why or why not? and the Based on the relationship described above, the internal rate of retum and net present value calculated in Requirement 1 for the two plans was expected. For Plan Alpha, the net present value is internal rate of return is V the required rate of return. For Plan Beta, the net present value is and the internal rate of return is the required rate of return Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine your answers. 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 S The IRR (internal rate of return) of Plan Alpha is Hyde 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. Hyde 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 . 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 rule of return. Requirement 2. Explain the relationship between NPV and IRR. Based on this relationship equired rate of return, are your answers as expected in Requirement 1? Why or why not? The internal rate of return is the interest rate that makes the net present value of an investm the required rate of return and if the nel present value is negative, the interne negative Thus, if an investment's net present value is positive, the internal rate of retum is the required rate of return. positive Based on this relationship and the company's required rate of return, are your answers as e ent 1? Why or why not? and the Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans V as expected. For Plan Alpha, the net present value is internal rate of return is the required rate of return. For Plan Beta, the net present value is and the internal rate of return is the required rate of return. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine your answers. 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 s The NPV (net present value) of Plan Beta is $ DOO The IRR (Internal rate of retum) of Plan Alpha is % Hyde Company is considering two capital investments. Both investments have an initial cost of $6,000,000 and total net cash inflows of S14,000,000 over 10 years. Hyde requires a 20% rate of return on this type of investmen Expected net cash inflows are as follows: (Click the icon to view the expected net cash inflows.) Read the requiremonts. Which plan, if any, should the company pursue? Based on the results above, the company should pursue V 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 require "answers as expected in Requirement 1? Why or why not? The internal rate of return is the interest rate that makes the net present value of an investment if an investment's net present value is positive, the internal rate of return is greater than the required rate of return and if the net present value is negative, the internal rate of return is of return less than Based on this relationship and the company's required rate of return, are your answers as expected in Requirement 11 and the Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans as expected, For Plan Alpha, the net present value is internal rate of return is the required rate of retum. For Plan Beta, the net present value is and the internal rate of return is the required rate of return. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine your answers. 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 S The NPV (net present value) of Plan Beta Is $ The IRR (internal rate of return) of Plan Alpha is % Hyde 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. Hyde 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. 1112 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 why not? Thus, If an investment's net present value is positive, the internal rate of retum is The internal rate of return is the interest rate that makes the net present value of an investment the required rate of return and if the net present value is negative, the internal rat aturn Based on this relationship and the company's required rate of return, are your answers as expec equal to zero. and the Based on the relationship described above, the internal rate of retum and net present value calc internal rate of return is the required rate of return. For Plan Beta, the net present as expected. For Plan Alpha, the net present value is i is the required rate of return greater than the original cost. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5.5 your answers. Use parentheses or a minus sign for a negative NPV. Round the NPV calculation less than the sum of the cash inflows. RR. Which plan, if any, should the company pursue? (Use Excel to determine ons to two decimal places, X.XX%) The NPV (net present value) of Plan Alpha is $ The NPV (net present value) of Plan Beta is s The IRR (internal rate of retum) of Plan Alpha is %. The IRR (internal rate of retur) of Plan Beta is % Hyde Company is considering two capital investments. Both investments have an initial cost of $6,000,000 and total nel cash inflows of $14,000,000 over 10 years. Hyde 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 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 not? The internal rate of return is the interest rate that makes the net present value of an investment the required rate of return and if the net present value is negative, the internal rate of retum is Thus, if an investment's net present value is positive, the internal rate of return is the required rate of return. and the 1 p and the company's required rate of return, are your answers es expected in Requirement 1? Why or why not? p described above, the intemal rate of retum and net present value calculated in Requirement 1 for the two plans V as expected. For Plan Alpha, the net present value is greater than the required rate of return. For Plan Beta, the net present value is and the internal rate of return is the required rate of return. less than rther negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine Your HOWGI. Va 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, XXX%.) 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 % Hyde 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. Hyde 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 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 why not? positive, the internal rate of return is The internal rate of return is the interest rate that makes the net present value of an investment the required rate of retum and if the net present value is negative, the Internal rate of retum is Thus, if an investment's net present value the required rate of return. Based on this relationship and the company's required rate of return, are your answers as expected in Requin ot? Based on the relationship described above, the internal rate of return and net present value calculated in Reg ans as expected. For Plan Alpha, the net present value is and the greater than Internal rate of rotum is the required rate of return. For Plan Beta, the net present value is ate of return is v the required rate of retum less than Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for bo e NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine your answers. Use parentheses or a minus sign for a negative NPV. Round the NPV calculations to the nearest I UVIGO E RR 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 S ali 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? Hyde Company is considering two capital investments. Both investments have an initial cost of $6,000,000 and total net cash inflows of S14,000,000 over 10 years. Hyde 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. and the Based on the relationship described above, the intemal rate of return and net present value calculated in Requirement 1 for the two plans internal rate of return is V the required rate of retum. For Plan Beta, the net present value is and the internal ratec vas expected. For Plan Alpha, the net present value is the required rate of return. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NP your answers. Use parentheses or a minus sign for a negative NPV. Round the NPV calculations to the nearest whole dollar and the IRRC plan, if any, should the company pursue? (Use Excel to determine decimal places, X.XX%.) are The NPV (net present value) of Plan Alpha Is $ are not 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 o. Which plan, if any, should the company pursue? O A. 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. OB. 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. OC. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plan, it should pursue Plan Alpha because it has the lower NPV and IRR. OD. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans If the company must choose only one plan, it should pursue Plan Beta because it has the higher NPV and IRR. Hyde 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. Hyde 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 and the Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans as expected. For Plan Alpha, the net present value is internal rule of return is the required rate of return. For Plan Beta, the net present value is and the internal rate of return is the required rate of return. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Us your answers, 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%.) negative The NPV (net present value) of Plan Alpha is $ positive The NPV (net present value) of Plan Beta is s 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? O A. 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. OB. The company should not pursue elther plan because the NPV is negative and the IRR is less than the company's required rate of return for both plans. O c. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plen, it should pursue Plan Alpha because it has the lower NPV and IRR. OD. If the company has sufficient resources and the plans are not mutually exclusive, It should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plan, it should pursue Plan Beta because it has the higher NPV and IRR, Hyde 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. Hyde requires a 20% rate of return on this type of investment. Expected net cash inflows are as follows: E (Click the icon to view the expected net cash inflows.) Read the requirements. CH and the Based on the relationship described above, the Internal rate of retum and net present value calculated in Requirement 1 for the two plans as expected. For Plan Alpha, the net present value is internal rate of return is the required rate of return. For Plen Beta, the net present value is and the internal rate of return is the required rate of return. Requirement 3. After fu your answers. Use parei mpany can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine 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 (nel present v greater than less than The NPV (nel present 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? O A. 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. OB. 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. OC. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of retum for both plans. If the company must choose only one plan, it should pursue Plan Alpha because it has the lower NPV and IRR. OD. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV positive and the IRR is greater than the company's required rate of retum for both plans. If the company must choose only one plan, it should pursue Plan Beta because it has the higher NPV and IRR. Hyde 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. Hyde 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. and the Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans as expected. For Plan Alpha, the net present value is internal rate of return is the required rate of return. For Plan Beta, the net present value is and the internal rate of return is the required rate of return. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 fc your answers. Use parentheses or a minus sign for a negative NPV. Round the NPV calculations to the ne ulate the NPV and IRR. Which plan, if any, should the company pursue? (Use Excel to determine nd the IRR calculations to two decimal places X.XX%.) negative The NPV (net present value) of Plan Alpha is $ positive The NPV (net present valuo) of Plan Bota is S 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? O A. 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. OB. 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. O c. If the company has sufficient resources and the plans are not mutually exclusive, It should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plan, it should pursue Plan Alpha because it has the lower NPV and IRR. OD. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of return for both plans. If the company must choose only one plan, it should pursue Plan Beta because it has the higher NPV and IRR. Hyde 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. Hyde 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 Based on the relationship described above, the internal rate of return and net present value calculated in Requirement 1 for the two plans as expected. For Plan Alpha, the net present value is and the internal rate of return is the required rate of return. For Plan Beta, the net present value is and the internal rate of return is the required rate of return. Requirement 3. After further negotiating, the company can now invest with an initial cost of $5,500,000 for both plans. Recalculate the NPV and IRR uld the company pursue? (Use Excel to determine your answers. Use parentheses or a minus sign for a negative NPV. Round the NPV calculations to the nearest whole dollar and the IRR calculations XXX%) The NPV (net present value) of Plan Alpha is S greater than less than The NPV (net prosent value) of Plan Beta Is $ The IRR (internal rate of return) of Plan Alpha is The IRR (intemal rate of return) of Plan Beta is Which plan, if any, should the company pursue? O A. 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. OB. 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. O c. If the company has sufficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV is positive and the IRR is greater than the company's required rate of retum for both plans. If the company must choose only one plan, it should pursue Plan Alpha because it has the lower NPV and IRR. OD. If the company has suficient resources and the plans are not mutually exclusive, it should pursue both plans because the NPV positive and the IRR is greater than the company's required rate of retum for both plans. If the company must choose only one plan, it should pursue Plan Beta because it has the higher NPV and IRR