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A company is considering two mutually exclusive expansion plans. Plan A requires a $ 4 0 million initial outlay on a large - scale integrated

A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million initial outlay on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $12 million initial outlay to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $2.69 million per year for 20 years. The firm's WACC is 11%.
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