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A company is considering two mutually exclusive expansion plans. Plan A requires a $50 million initial outlay on a large-scale integrated plant that would provide

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A company is considering two mutually exclusive expansion plans. Plan A requires a $50 million initial outlay on a large-scale integrated plant that would provide expected cash flows of $7.5 million per year for 20 years. Plan B requires $25 million initial outlay to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $5.0 million per year for 20 years. The firm's WACC is 12%. Construct the difference in cash flows between the projects and calculate the crossover rate where the two projects' NPV are equal. 8.88% O 7.93% O 7.27% 8.45% O 7.75%

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