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An oil-driling company must choose between two mtually exclusive extraction projects, and each mquires an in tial outlay at t=0 of sit. 6 manion Under

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An oil-driling company must choose between two mtually exclusive extraction projects, and each mquires an in tial outlay at t=0 of sit. 6 manion Under plan A, all the oil would be extracted in 1 year, producing a cash flow at t=1 of $13.92 million. Under Phan 8 , cash flows ivould be 52 .0612 milice per year for 20 years. The firm's WACC is 11.8%. a. Construct NPV profiles for Plans A and B. Enter your answers in milliont. For example, an answer of 510 sSo,000 should be enbered as io.55. Hf an aneunt is zero, enter "D". Negative walues, if any, should be indicated by a minus sign, Do not round intermivediate caiculations. pound your answers to fwa decimal places. Identify atsh erojects iRR. De not round intermecute colculations. Round your answers to two decimal pigcul. Froject A 20. Identify each project's tRR. Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: Find the crossover rate. Do not round intermediate calculations. Round vour answer to two decimal places. b. Is it logical to assume that the firm would take on aft evailable independent, average-risk arojects with returns greater than 11 i. 8 zat cost of cnly 11.8%, because alil the company can do with these cash flows a to replace money that has a cest of 11.846? Does this imply that the WAcC is the correct reinves trent rote assumotion for a project's chsh figns? Coich Mo Worl (s remining

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