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could use some help! thank you! 58b&cd=13314624388.sha MINDTAP Eivity: NPV profiles Q Search this Video Excel Online Structured Activity: NPV profiles A company is considering
could use some help! thank you!
58b&cd=13314624388.sha MINDTAP Eivity: NPV profiles Q Search this Video Excel Online Structured Activity: NPV profiles A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large scale integrated ploot that would provide expected cash flows of $6.39 million per year for 20 years, Plan B requires a $15 million expenditure to build a somewhat less efficient, more labor Intensive plant with an expected cash flow of $3.36 million per year for 20 years. The B's WACOM 10%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below HI Open spreadsheet 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. Plan A: $ million Plan B: 5 million Calculate each project's IRR. Round your answer to two decimal places. plan A: piumentid=5932632365234278943577737914&teSBN 9781337909686&id=1331462438&sna a @ $ * GAGE MINDTAP a Search this course nline Activity: NPV profiles a. Calculate each project's NPV. Round your answers to two decimal places. Do not found your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Plan AS million Plan B: 5 million Calculate each project's IRR. Round your answer to two decimal places. Plan : Plan B b. By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the rest percent Calculate the crossover rate where the two projects NPVs are equal. Round your answer to two decimal places 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 Step by Step Solution
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