= Homework: Homework Set 4 Question 15, P11-19 (si.. Part 1 of 8 HW Score: 19.17%, 9.58 of 50 points O Points: 0 of 2 Save Breakeven cash inflows and risk Blair Cases and Chemicals is a supplier of highly purified gases to semiconductor manufacturers. A large chip procucer has asked Blair to build a new gee production facility close to an existing semiconductor plant. Once the new gas plant is in place, Blair will be the exclusive supplier for that semiconductor fabrication plant for the subsequent years. Blair is considering one of two plant designs. The first is Blair's 'standandi lant which will cost $20.1 milion to buid. The second is for a custom plant which will cost $39.6 million so build. The custom plant will allow Blair to produce the highly specialized gases that are required for an emergency semicunductor iranufacturing process. Blair estimates that its client wil order $9.8 milion of product per year if the traditional plant is constructed, but if the customized design is put in place, Blair expeds lo sal $15.2 milion worth of product annually to ils client. Blair las enough froney lo build eillier type of plant, and in the absence of risk differences, accepts the project with the highest NPV. The cost of capital is 12.4%. A. Find the NPV for each project. Are the projects acceptable? b. Find the breskevan cash willow for each project c. The firm has estimated the probabilities of achieving various rarges of cash inflows for the two projects, as shown in the table. What is the probability that cach project will achieve the breakevan cash inflow found in part(by? d. Which project is more risky? Which project has the potentially higher NPV? Discuss the risk-retum trade-offs of the two projects c. If the firm wished to minimize kasses that is NPV