please answer all, this is 1 question
company is considering two mutually exclusive expansion plans. Plan A requires a 540 million expenditure on a large-scale integrated plant that woulg ovide expected cash flows of $6.39 million per year for 20 years. Plon B requires a $11 mitilion expenditure to builid a somewhat less efficient, more bor-intensive plant with an expected cash flow of $2.47 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 $10,550,000 should be entered as 10.55. Do not round intermediate calculations, Round your answers to two decimal places. Pian A: $ million Pian B: $ million Calcuiste ench project's IRR. Round your answers to one decimal place. Pinn Al Pian B: o b. By graphing the NPV profies for Plan A and Pan B, determine the crossover rate. Round your answer to one decilial place. c. Caliculate the crossover rote where the two projects' NPVs are equal. Round your answer to one decimal place. ne d. Is NFiv better than IRR for making capital budgeting decisions that add to ahareholder value? r-intensive plant with an expected cash flow of $2.47 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 $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. Calculate each project's IRR. Round your answers to one decimal place. Plan A: % Plan B: o b. By graphing the NPV profiles for Plan A and Pian B, determine the crossover rate. Round your ansiver to one decimal place. of 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