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cash flow is in the problem.. expected cash flow $6.39 million for 20 years expected cash flow of 2.47 million for 20 years a. Calculate
cash flow is in the problem..
a. Calculate each project's NPV. Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. PlanA:$PlanB:$millionmillion Calculate each project's IRR. Round your answer to two decimal places. Plan A: Plan B: b. By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent. c. Calculate the crossover rate where the two projects' NPV's are equal. Round your answer to two decimal places. d. Why is NPV better than IRR for making capital budgeting decisions that add to shareholder value? The input in the box below will not be graded, but may be reviewed and considered by your instructor. NPV profiles WACC 11.00% (Dollars in Millions) Plan A \begin{tabular}{rrrrrrr} 0 & 1 & 2 & 3 & 4 & \\ \hline$40.00 & $6.39 & $6.39 & $6.39 & $6.39 & $6 \end{tabular} Plan B $11.00$2.47$2.47$2.47$2.47$2. 10 Project NPV Calculations: Formulas 11NPVA 12NPVB \#N/A \#N/A Project IRR Calculations: \begin{tabular}{l|l|l|} 15 & RRA & \#N/A \\ 16 & RRB & \#N/A \\ \hline 17 & & \end{tabular} 18 NPV Profiles: NPV Profiles expected cash flow $6.39 million for 20 years
expected cash flow of 2.47 million for 20 years
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