Excel Online Structurnd Activity: NPV prohiles A company is considering two mutually excluphe expansion plans. Plan A requires a $41 milition expenditure on a larpe-ecale integrated plant that weald provise expected cash flows of 56.55 maliun per year for 20 years. Plan. 8 requires a $12 million expenditure to build a somexthat less efficient, fiore labor: Intensive plant with an expocted cash flow of $2.69 million per year for 20 years. The firm's Waccis it of. The data has been coliected in the Mitrotent Excel Oriline file below. Open the spreadshele and perform the required analysis to answer the questions below. Bpen sproadshoet a. Calculate each project's NPy. Round your answers to two decimal places: Do not round your intermediate calculatinnt. Enter your ansaers in militiors. For nxample, an answer of 510,550,000 thodid be entered as 10.55. Plan A: 1 Plan B: 3 milition Calculate each project's tRr. Round your ariewer to two decimal places. Pian A. Pran B b, By graphing the NPV profiles for Pan A and Man as, aperonimate the trotamer rate to thet nearest percent. e. Calcilate the crossover rate where the rwo prejecti' NPys are equal. Acund your ananer to two decimal olaces. a- Calculate each project's NpY. 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 thould be entered as 10,55 . Calculate each project's 1RR. Round your answer to two decimal places: Pian A: Plan B: b. By graphing the NzW profies for plan A and Plan 8, approximate the crossover rate to the neareit percent. C. Calculate the crossover rate where the two projects' NpVs are equal. Round your answer to two decimal plates. d. Why is NFV better than 1RR 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. Excel Online Structurnd Activity: NPV prohiles A company is considering two mutually excluphe expansion plans. Plan A requires a $41 milition expenditure on a larpe-ecale integrated plant that weald provise expected cash flows of 56.55 maliun per year for 20 years. Plan. 8 requires a $12 million expenditure to build a somexthat less efficient, fiore labor: Intensive plant with an expocted cash flow of $2.69 million per year for 20 years. The firm's Waccis it of. The data has been coliected in the Mitrotent Excel Oriline file below. Open the spreadshele and perform the required analysis to answer the questions below. Bpen sproadshoet a. Calculate each project's NPy. Round your answers to two decimal places: Do not round your intermediate calculatinnt. Enter your ansaers in militiors. For nxample, an answer of 510,550,000 thodid be entered as 10.55. Plan A: 1 Plan B: 3 milition Calculate each project's tRr. Round your ariewer to two decimal places. Pian A. Pran B b, By graphing the NPV profiles for Pan A and Man as, aperonimate the trotamer rate to thet nearest percent. e. Calcilate the crossover rate where the rwo prejecti' NPys are equal. Acund your ananer to two decimal olaces. a- Calculate each project's NpY. 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 thould be entered as 10,55 . Calculate each project's 1RR. Round your answer to two decimal places: Pian A: Plan B: b. By graphing the NzW profies for plan A and Plan 8, approximate the crossover rate to the neareit percent. C. Calculate the crossover rate where the two projects' NpVs are equal. Round your answer to two decimal plates. d. Why is NFV better than 1RR 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
