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help asap A company is considering two mutually exclusive expansion plans. Ptan A requires a $39 million expenditure on a targe-scale integrated plant that would
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A company is considering two mutually exclusive expansion plans. Ptan A requires a $39 million expenditure on a targe-scale integrated plant that would provide expected cash flows of $6.23 million per year for 20 years. Plan 8 requires a $11 milion expenditure to build a somewhat less efficlent, more labor-intenstve plant with an expected cash flow of $2.47 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. Catcutate esch project's NPV, Round your answers to two decimal places. Do not round your intermediate calculations. Enter your antwers in miltions. For example, an answer of $10,550,000 should be entered as 10,55 . pian A: 5 miltion Plan Bis miltion Calculate each project's IRR. Round your answer to two decimat places. Pian A: Plan B: b. By graphing the NPV profles 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 Step by Step Solution
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