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Langley Company is considering two capital investments. Both investments have an initial cost of $10,000,000 and total net cash inflows of $17,000,000 over 10 years. Langley requires a 12% 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%.) x Data Table The NPV (net present value) of Plan Alpha is x Requirements The NPV (net present value) of Plan Beta is Year Plan Alpha Plan Beta Year 1 $ Year 2 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 $9,500,000 for both plans. Recalculate the NPV and IRR. Which plan, if any, should the company pursue? Year 3 Year 4 1,700,000 $ 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 2,300,000 2,900,000 2,300,000 1,700,000 1,600,000 1,200,000 Year 5 Year 6 Year 7 Print Done Year 8 1,700,000 800,000 Year 9 1,700,000 1,700,000 400,000 2,100,000 Year 10 Enter any number in the edit fields and then click Check Answer. $ 17,000,000 $ 17,000,000 Total 7 parts Clear All wer remaining Print Done

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