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An oll-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $11 milion. Under

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An oll-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $11 milion. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow att - 1 of $13.2 milion. Under Plan B, cash flows would be $1.9546 million 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 millions. For example, an answer of $10,550,000 should be entered as 10.55. If an amounts zero, enter "O". Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places. Discount Rate NPV Plan NPV Plan B OW million million 5 million million 10 $ $$$ million million 12 X X X X X X million million 15 million million 12 million million 20 million million Identify each projects. Do not round intermediate calculations found your answers to two decimal places Project A: 98 $ A Project : Find the crossover rate. Do not round intermediate calculations. Round your answer to two decimal places > D. Is it logical to assume that the firm would take on all available independent, average risk projects with returns greater than 11

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