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An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t=00 $13 million. Under Plan A all

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An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t=00 $13 million. Under Plan A all the oil would be extracted in 1 year producing a cash flow tt-1 of $15.6 million. Under Plan, cash flow would be $2.31 million per year for 20 years. The firm's WACC is 11%. a. Construct NPV 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 "o". Negative values, if any. should be indicated by a minus in. Do not round intermediate calculations. Round your answers to two decimal place. Discount we NPV Plan NPV Plan $ milion $ 5 milion million 10 million million 12 million million 15 milion million milion million 20 million million Identity each pre RR. Do not round Intermediate calculations. Round your ho decimal place Project Project Find the crossover rate. Do not round intermediate calculations. Round your answer to the decimal places b. 1st logical to assume that the firm would take on all wailable independent, averageris projects with return greater than 115 Set If all available projects with returns greater than 11% have been undertaken does this mean that cash flow from past investment opportunity cost of only 11, because all the company can do with these cash flow is to replace money that has a cost of 1157 Does this imply that the WACC is the correct inventation for a project A

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