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- Activity: NPV profiles Video Excel Online Structured Activity: NPV profiles A company is considering two mutually exclusive expansion plans. Plan A requires a $39

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- Activity: NPV profiles Video Excel Online Structured Activity: NPV profiles A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure 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 build 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 WAOC 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 17.87 million Plan : $ Plan B: 5 1347 million Calculate each project's TRR. Round your answer to two decimal places Pan A 15 Plan B 21 11 By graphing the NPV prohles for Plan A and Plan B, approximate the crossover rate to the nearest percent 113 X b. By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent. 11.3 C. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. 11.50 % 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 NPV methods calculates the

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