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P10-27 (similar to) Integrative-Conflicting Rankings The High-Fliying Growth Company (HFGC) has been growing very rapidy in recent years, making its sharehoiders rich in the Question

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P10-27 (similar to) Integrative-Conflicting Rankings The High-Fliying Growth Company (HFGC) has been growing very rapidy in recent years, making its sharehoiders rich in the Question Hep * C managers believe that 25% is a reasonable Sgure for the firm's capacity, and the second project involves introducing one of the fim's existing last few cost of capital. To sustain a high growth rate, the HFGC CEO argues that the company must continue to invest in Two projects are currently under review. The first is an expansion of the firm's production capacity, and the second project involves introducing one of the frm's existing products into a new market. Cash flows from each project appear in the following table: EE 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 their IRRs c. Calculate the Pl 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 firm should do? a. The NPV of the plant expansion project is$ (Round to the nearest dolar) Data Table (Click on the icon located on the top-right corner of the data tablo below in order to copy its contents into a spreadsheet.) YearPlant expansion Product Introduction $3,800,000 $2.750,000 $2,750,000 $3,000,000 $1,750,000 $500,000 $375,000 $375,000 $300,000 $275,000 Enter your answer in the answ Print Done parts Check

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