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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

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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 plant that would provide expected cash flows of $6.39 million per year for 20 years, Plan B requires a $13 million expenditure to build a somewhat less efficient, more labor-Intensive plant with an expected cash flow of $2.91 million per year for 20 years. The firm's WACC is 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 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 shquld be entered as 10.55. Plan A: $ million Plan B: $ million Calculate each project's IRR. Round your answer to two decimal places. Plan A 96 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 updates now or try tonight? line Activity: NPV profiles HUBULAGHI UCHUN CICLE MIGUEL YE VE X mm 11100 Open readsheet 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: $ 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. Roynd your answer to two decimal places d. Why is NPV better than IRA 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 an B - - + + ma 12 4 DES M RSS SEM VE 100 4 D Fom MC MI NY 2000 NY W ODS 500 H 100 159 205 22 1000 SO 0001 200 0015 00 1000 NV Proles 10 12 11 15 B Shetti 811 NPV Pro 13 10 VE TA 11 1 Sheet Bule MA

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