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1 year, producing a cash flow at t=1 of $14.88 million. Under Plan B, cash flows would be $2.2034 million per year for 20 years.

image text in transcribedimage text in transcribed 1 year, producing a cash flow at t=1 of $14.88 million. Under Plan B, cash flows would be $2.2034 million per year for 20 years. The firm's WACC is 12.7%. values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places. Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % Determine the crossover rate. Approximate your answer to the nearest whole number. % b. Is it logical to assume that the firm would take on all available independent, average-risk projects with returns greater than 12.7% ? all the company can do with these cash flows is to replace money that has a cost of 12.7% ? -Select- Does this imply that the WACC is the correct reinvestment rate assumption for a project's cash flows

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