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2. Problem 12-15 (Scale Differences) Scale Differences The Pinkerton Publishing Company is considering two mutually exclusive expansion plans anal for the expenditure of somon on
2. Problem 12-15 (Scale Differences) Scale Differences The Pinkerton Publishing Company is considering two mutually exclusive expansion plans anal for the expenditure of somon on a large-scale integrated plant that will provide an expected cash flow stream of 58 mon per year for 20 years. Man calls for the expenditure of S t ud e nts , more abortensive plant that has an expected cash flow stream of $2.4 milion per year for 20 years. The firm's cost of capital 10% a. Calculate each project's NPV. Do not round intermediate calculations. Round your answers to the nearest doar Project A:s Project : $ Calculate each project's RR Round your answers to two decimal places Project A Project b. Set up a Project cutows, any. by thwing the cash flows that will the times with the large plant rather than the smaller plant Round your answers to the nearest dolar. Use a minus sign to enter cash Year Project A Cash Flows 1-30 What is the NPV for this project A Do not found intermediate calculations. Round your answer to the nearest or Useam to enter negative any What is the IRR for this project A Round your answer to two decimal places c. Graph the NPV profiles for Plan A, Plan B, and Project A Select the correct graph. 1501 ( ( of Dulles) of Data) WAN APV AN son NPVM A 10 -25f Cost of capita -501 Cost of capital 25 Cost of a 25+ Crop 501 The correct graphis
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