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A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million expenditure on a large-scale integrated plant that would provide expected

A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.55 million per year for 20 years. Plan B requires a $11 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.47 million per year for 20 years. The firm's WACC is 11%.

  1. Calculate each project's NPV. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places.

    Plan A: $ 11.16 million

    Plan B: $ 8.67 million

    Calculate each project's IRR. Round your answers to one decimal place.

    Plan A: 15.00%

    Plan B: 22.04%

  2. By graphing the NPV profiles for Plan A and Plan B, determine the crossover rate. Round your answer to the nearest whole number. %
  3. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to one decimal place. %
  4. Is NPV better than IRR for making capital budgeting decisions that add to shareholder value?

Hi, please help with b, c, and d.

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