A.

Plan A: 15%

Plan B: 21.96%

B.

12%

*Need:

A.

Plan A $

Plan B $

C

%

: NPV profiles Video Excel Online Structured Activity: NPV profiles 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 $13 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.91 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. x Open spreadsheet a. Calculate each project's NPV. 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: million Plan B: $ million Calculate each project's 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. WACC 9.00% (Dollars in Millions) Plan A 0 $41.00 1 $6.56 2 $6.55 3 $6.55 $6.55 5 $6.56 6 $6.56 7 $6.55 8 $6.66 $6,56 10 $6.56 11 $6.55 1 $6. Plan B $13.00 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 B11 D E C Formulas #NA #NA 10 Project NPV Calculations: NPVA 12 NPV: 11 Project IRR Calculations: IRRA #N/A #NA 16 IRR, NPV Profiles: Discount Rates 0% 5% 10% NPVA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 15% 20% 22% 25% Com NPV Profiles + + + + + 5% 10% 15% 20% 22% XSC Calculation of Crossover Rate $ 47 Plana $41.00 58.55 $8.55 Plan B -$13.00 $2.91 2.91 $2.91 201 222 28 $$ 2201120122013201 $2,01 $291 291 2.2 2012.01 291 $2.91 51 Project Dela Formulas 55 Crossover Rate RR 18 8 $6.55 9 $6.55 10 $6.55 11 $6.56 12 $6.56 13 $6.55 19 $6.56 55 $6.56 $6.56 $6.56 $6.55 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 $2.91 NA UNA UNA