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A company is considering two mutually exclusive expansion plans. Plan A requires a $ 4 1 million expenditure on a large - scale integrated plant
A company is considering two mutually exclusive expansion plans. Plan A requires a $ million expenditure on a largescale integrated plant that would provide expected cash flows of $ million per year for years. Plan B requires a $ million expenditure to build a somewhat less efficient, more laborintensive plant with an expected cash flow of $ million per year for years. The firm's WACC is A Calculate each project's NPV Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $ should be entered as Plan A: $ Plan B: $ B Calculate each project's IRR. Round your answer to two decimal places. Plan A: Plan B: CBy graphing the NPV profiles for Plan A and Plan B approximate the crossover rate to the nearest percent
A company is considering two mutually exclusive expansion plans. Plan A requires a $ million expenditure on a largescale integrated plant that would provide expected cash flows of $ million per year for years. Plan B requires a $ million expenditure to build a somewhat less efficient, more laborintensive plant with an expected cash flow of $ million per year for years. The firm's WACC is
A Calculate each project's NPV Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $ should be entered as
Plan A: $
Plan B: $
B Calculate each project's IRR. Round your answer to two decimal places.
Plan A:
Plan B:
CBy graphing the NPV profiles for Plan A and Plan B approximate the crossover rate to the nearest percent
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