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An oldeling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay att of $12.4 million. Under Pan A, all

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An oldeling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay att of $12.4 million. Under Pan A, all the oil would be extracted in 1 year, producing a cash flow att ut of $14.88 million. Under Pan, cash flows would be $2.2034 million per year for 20 years. The firm's WACC IS 12:24 2. Construct NPV profiles for Mars A and B. Enter your answers in millons. For example, an answer of $10,550,000 should be entered as 10.55. If an amount is no, enter "o". Negative values, if any, should be indicated by a minus si Denet round intermediate calculations. Round your answers to two decimal places Discount Rate NPVA NPV Man OS $ mation $ 5 million 1D milion million 12 million million 15 million 17 milion 20 Identify each project's RR. Do not round intermediate calculations. Round your answers to two decimal places Project Project Find the crossover De not round Intermediate actions. Round your answer to two decimal b. Is it logical to me that the would take on all available independent, average to the greater than 12:27 If available projects with returns greater than 12 have been undertaken does this mean that chows from an oportunity cost of only 12, the company can do with these cash flows is to replace money that has a cost 122 Does thing that the WACC the correct reinvestment rate motion for a project cash flow

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