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An oil-driling company must choose between two mutually exdusive extraction projects, and each requires an initial outlay at & = 0 of $13 million. Under
An oil-driling company must choose between two mutually exdusive extraction projects, and each requires an initial outlay at \& = 0 of $13 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t=1 of $15.6 million. Under Plan 8 , cash flows would be $2.31 milion per year for 20 years. The firm's WACC is 12.5%. 3. Construct NTV profiles for Plans A and B. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. If an amount is zero, enter "0*. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places. Identify each prolects this. Do not round intermediate calculations. Round your answers to two decinal places. Project A: Prolect ti: Find the crossover rate. po not round intermediate calculations. Round your answer to two decimal places
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