Excel Online Structured Activity: NPV profiles

A company is considering two mutually exclusive expansion plans. Plan A requires a $$41$ million expenditure on a large$-$scale integrated plant that would provide expected cash flows of $$6\mathrm{.}55$ million per year for $20$ years. Plan B requires a $$12$ million expenditure to build a somewhat less efficient, more labor$-$intensive plant with an expected cash flow of $$2\mathrm{.}69$ million per year for $20$ years. The firm's WACC is $9\%.$ 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.

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 $10\mathrm{.}55.$

Plan A: $ $$ million

Plan B: $ $$ million

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' NPVs are equal. Round your answer to two decimal places.

$\%$