Integrative-Conflicting Rankings The High-Flying Growth Company (HFGC) has been expanding very ridy in recent years, making its shartholder sich in the process. The average annual rate of return on the stock in the past few years has been 24%, and HFGC managers believe that 20% resonable figure for the cost of capital. To sustain a high growth rato, HFGC'S CEO argues that the company must continue to rest in projects that offer the use of our possible Two projects are currently under review. The first is an expansion of them's production capacity, and the second propect involves doing one of them in products into a new market Cash flows from each project appear in the following table m a. Calculate the NPV for both projects Rank the projects based on their NPVS b. Calculate the IRR for both projects Rank the projects based on the IRRS c. Calculate the PI for both projects. Rank the projects based on their Pls d. The firm can only afford to undertake one of these investments What do you think the fem should do? a. The NPV of the plant expansion projed is $(Round to the nearest doilar) Year 0 1 2. 3 Plant expansion - $3,500,000 $1,750,000 $1,500,000 $3,000,000 $1,750,000 Product introduction - $400,000 $275,000 $250,000 $250,000 $275,000 AWN