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A company is considering two mutually exclusive expansion plaris, Plan A requires a $39 million explenditure on a large-scale integrated plant that would provide expected
A company is considering two mutually exclusive expansion plaris, Plan A requires a $39 million explenditure on a large-scale integrated plant that would provide expected cash flows of $6.23 million per year for 20 years. Plan B requires a $12 million expenditure to bulld a somewhat less efficient, more labor* intensive plant with an expected cash flow of $2.69 million per year for 20 years. The firm's WacC is 11%. The data has been collected in the Microsaft Excel Online file below. Open the spreadsheet and perform the requlred analysis to answer the questions below. Open spreadsheet a. Calculate each project's NFV. Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10,55. PianA:$PianB:$mallionmillion Calculate each project's IRR. Round your answer to two decimal places. Pian A: Plan by b. By graphing the NPV profles for Plan A and Plan B, approximate the croseover rate to the nearest percent. c. Calculate the crostover rate where the two projects' NPVs are equal. Round your answer to fwo decimal places
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