A company is considering two mutually exclusive expansion plans. Plan A rep quite a 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 $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.69 million per year for 20 years. The firms WACC is 9%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

A. - Calculate each projects NPV. Round your answer to two decimals places. Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as $10.55.

Plan A: ????

Plan B: ????

• Calculate each projects IRR. Round your answer to two decimal places.

Plan A: ????

Plan B: ????

B. By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent.

????%

C. Calculate the crossover rate where the two projects NPV are equal. Round your answer to two decimal places.

????%

D. Why is NPV better than IRR for making capital budgeting decisions that add to shareholder value? The input in the box below will not be graded, but may be reviewed and considered by your instructor.

Escal Online Structure Active com dengan parues 24 percent of 135 requires a $12 besture to the contacto: 20 years Microsoft Excel Oriew. Open the radio and prom the required to be Open su Caciulate sech projects around your anzuerste to decimDonet rust your termeszta down, tidur your answers vertin for a 150. sagut de entre as zu Calle aan projecte de round your ner to zuo decimal places PARA Pan . By caping the profonde over the percent Calculate the crossover rate where the tra presets Vs. L. W but I gotong that whether the bear de verdad Excel Online Structured Activity: NPV profiles A company is considering two mutually exclusive expansion plans. Plan A requires a 541 milion 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 $12 million expenditure to build a somewhat less efficient, more tabor-Intensive plant with an expected cash flow of $2.69 million per year for 20 years. The firm's WACC IS 9. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Calculate each project's NP Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55 million Plan : million Calculate.cach projects IRR. Round your answer to two decimal places. an van tay graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent b. By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent c. Calculate the crossover rate where the two projects NPVK are equal. Round your answer to two decimal places d. Why is NPV better than 1RR for making capital budgeting decisions that add to shareholder value? The input in the box below will not be graded, but may be reviewed and considered by your Instructor F Aral 10 B Currency TER 4 * A D 1 G H M N WACC o 9.00 4 Dollar in ons Plan A 9 11 11 14100 GE 30.56 $8.5 50 50 1055 355 10 1655 5665 9156 10 15 155 WS # Plan $12.00 6925 12.00 9260 52.00 12.09 12.40 200 25 120 20 12.00 120 200 20 00 2 10 Project NPV Calculations 11 NPVA 12 NPV Formus MIA WNIA INIA MNIA 14 Project IRR Calculations 15 IRRA 16 RR 17 18 NPV Profiles 19 Discount Rates 20 21 0% 5% 23 10% 24 15% 25 20% 26 22% 27 25% 000$ NPVA 50.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV. $0.00 $0.00 $ $0.00 $0.00 30.00 50 00 $0.00 $