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Plan B , cash flows will be $ 1 . 4 million per year for 2 0 years. two decimal places. Use a minus sign
Plan B cash flows will be $ million per year for years.
two decimal places. Use a minus sign to enter cash outflows, if any.
I. Yes, assuming unequal risk among projects, and that the cost of capital is a constant and does not vary with the amount of capital raised.
II Yes, assuming equal risk among projects, and that the cost of capital decreases with the amount of capital raised.
III. Yes, assuming equal risk among projects, and that the cost of capital is a constant and does not vary with the amount of capital raised.
d Select the correct graph for NPV profiles for Plans A and B
The correct graph is graph C
Identify each project's IRR. Round your answers to two decimal places.
Project :
Project B:
Indicate the crossover rate. Round your answer to two decimal places.
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