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

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A company is considering two mutually excluslve expansion plans. Plan A requlres 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 miltion expenditure to build a somewhat less efficlent, more laberintensive plant with an expected cash flow of $2.47 miltion per year for 20 years, The firm's WACC is 1046. The data has been collected in the Microsort Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions beliow. Open spreadsheet a. Calcutate each project's NPW. 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 . Plan A: 5 milition Plan B: 5 miltion Calculate each project tRR. Round your answer to two decimal places. Pion A: %6 Plan B: b. By graphing the NIPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent. c. Calculate the crossover rate where the two projects' NPVs 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

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