Please answer all parts of the questions. Do not round intermediate calculations. Directions for rounding are shown in pictures. Thank you.

Attempts: Do No Harm: 1 24. Problem 11.16 (NPV Profiles: Scale Differences) eBook A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.69 million per year for 20 years. The firm's WACC is 10%. a. Calculate each project's NPV. Enter your answers in millions. For example, an answer of s10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places Plan A: $ Plan B: S Calculate each project's IRR. Round your answers to one decimal place Plan A: Plan B: million million b. By graphing the NPV profiles for Plan A and Plan B, determine the crossover rate. Round your answer to the nearest whole number. c. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to one decimal place d. Is NPV better than IRR for making capital budgeting decisions that add to shareholder value? O Type here to search 508 11/24/