Company is considering two capital investments

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BarlowBarlow Company is considering two capital investments. Both investments have an initial cost of $8,000,000 and total net cash inflows of $15,000,000 over 10 years. BarlowBarlow requires a 14?% rate of return on this type of investment. Expected net cash inflows are as? follows: 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 $7,600,000. Recalculate the NPV and IRR. Which? plan, if? any, should the company? pursue?

Reference no: EM131925146

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