Excel template - Saved Search (Option +Q) Single Line Ribbon Sign in ( 8 File Home Insert Formulas Data Review View Help Editing Comments 1 9 Arial v 10 B Currency CO D TO B11 A B F F G H 1 1 1 K M N o P Q R S V w X Z AR 3.UU NPV Profiles 28 29 30 31 $1.00 32 33 30D 34 $3.70 35 $960 36 $2.50 32 SOAD 38 39 $0.30 40 $0.20 41 $9.LO 12 $0.00 $ 43 44 15 Calculation of Crossover Rate 46 47 Plan A 48 49 Plan B 50 51 PODATA 52 Formulas 53 54 55 Crossover Rate = IRR. 56 10 196 2 25 1 2 4 12 13 15 18 D $41.00 5 7 $8.50 $8.50 $6.39 $8.50 10 $6.55 14 $6.55 11 $8.50 19 $6.55 $0.00 $8.55 $0.55 $12.00 S2.91 $2.91 $291 $2.91 $2.91 $2.91 5291 $2.91 $2.91 $2.91 $2.91 529 5291 $2.91 $ $2.91 5291 5291 $2.91 $2.91 $2.9 ANA ANA NA NA NA NA NA NA NA NA #A' NA '#IA #WA ANA #WA NA "ANIA #WA NA NA Formula NA 58 59 A Shoot 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 $6.55 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 11%. 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 10.55. 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. % 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. % 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. Excel template - Saved v Search (Option +Q) Single Line Ribbon Sign in File Home Insert Formulas Data Review Virw Help Editing Comments Arial 10 B ... Currency 41 2yYOv 4. B11 1x C F H 1 1 K L M N 0 P R s T U V Y Z 44 4 2 14 0 $41.00 1 $0.00 3 30.66 7 SUS 9 $6.00 10 36.66 11 S6.55 12 $6.55 13 S6.55 15 $6.55 17 95.00 18 $6.55 20 $0.55 30.55 $0.00 $0.55 $6.55 86.86 $6.55 36.00 30.55 -$13.00 $2.91 $2.91 $2.91 5291 $2.91 $9.91 $291 $2.91 $2.9 52.94 52.01 $9.91 $2.91 $2.91 5291 5291 $2.91 $2.91 $2.91 Formulas ANJA AWA A B 1 | NPV profiles 2 3 WACC 11.00% 4 5 Dalers in Monal 6 Plan 7 8PR y 10 Project NPV Calculations: 11 NPVA 12 NPV. 13 14 Projner RR Calculations, 15 RR 16 RRO 17 18 NPV Profiles 19 Discount Rates NPVA 20 30.00 21 SOCO 22 so.ca 23 101 30.00 24 1595 SOCO 25 SO.CO 26 SO.CO 27 25% 90.00 WA NPV. $0.00 30.00 $0.00 $0.00 3000 $0.00 $ $0.00 3000