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need by 1159 est plz and thank u :) A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure
need by 1159 est plz and thank u :)
A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.23 million per year for 20 years. Plan B requires a $12 million expenditure to build a somewhat less efficient, more laborintensive plant with an expected cash flow of $2.69 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. a. Calculate each project's NPW. Round your answers to two decimel places. Do not round your intermediate calculations. Enter vour answers in millions. For example, an arswer of $10,550,000 should be entered as 10.55. Plan A: $ million Plan B: $ Calculate each project's IRR. Round your answer to two decimal places. Plan A: \% Plan B: % b. BV graphing the NPV profiles for Plan A and Plan B, approximate the crosscver fate to the nearest percent. 8% c. Calculate the crossciver rate where the two projects' NDVs are equal. Round your answer to two cecimal places. 8% d. Why is NPV hettor than IRR for making capital budgeting decisions that add to shamholder value? The input in the box below will not be graded, but may be reviewed and considered by your instructorStep by Step Solution
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