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An oll-drilling company must choose between two mutually exclusive extraction projects, and each costs $11.4 million. Under Plan A, all the oll would be extracted

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An oll-drilling company must choose between two mutually exclusive extraction projects, and each costs $11.4 million. Under Plan A, all the oll would be extracted in 1 year, producing a cash flow at t 1 of $13.68 million. Under Plan B, cash flows would be $2.0257 million per yeer for 20 years. The firm's WACC is 11.4% . a. Construct NPV profiles for Plans A and B. Enter your answers in milions. 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 dedmel places Discount Rate NPV Plan A NPV Plan B 0% million milion million million 10 million million 12 million million 15 million million 17 million million 20 million million Identify each project's IRR. 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 your answer to two decimal places. 9% million million 20 million million Identify each project's IRR. Do not round intermediate calculations. Round your answers to two dedimal places. Project A: % Project B: % Find the crossover rate. Da not round intermediate calculations. Round your answer to two decimal places. % b. Is it logical to assume that the firm would take on all available independent, average-risk projects with returns greater than 11.4 %7 -Select- If all available projects with returns greater than 11.4% have been undertaken, does this mean that cash flows from past investments have an opportunity Cost of only 11.4 % , because all the company can do with these cash flows is to replace money that has a cost of 11.4 %? -Select- Does this imply that the WACC is the correct reinvestment rate assumption for a project's cash flows? -Select

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