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please i really need both questions done An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at

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An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t =0 of $11 million. Under. Plan A, all the oil would be extracted in 1 year, producing a cash flow at t=1 of $13.2 million. Under Plan B, cash flows would be $1.9546 million per year for 20 years. The firm's WACC is 11.3%. a. Construct NPV profiles for Planis A and B. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. If an amount is zero, enter " 0 ". Negative values, if any, should be indicated by a minus sign, Do not round intermediate calculations. Round your answers to two decimal places. Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % Find the crossover rate, Do not round intermediate calculations. Round your answer to two decimal places. Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % Find the crossover rate. Do not round intermediate calculations. Round your answer to two decimal olaces. % b. Is it logical to assume that the firm would take on all avalable independerit, average-risk projects with returns greater than 11.3% ? If all available projects with returns greater than 11.3% have been undertaken, does this mean that cash flows from past investments have an opportunity cost of only 11.3%, because all the company can do with these cash flows is to replace money that has a cost of 11.3% ? Does this imply that the WACC is the correct reinvestment rate assumption for o project's cash flows? Kahn Inc. has a target capital structure of 50% common equity and 50% debt to fund its $8 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 13%, a before-tax cost of debt of 8%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D1) is $3, and the current stock price is $27. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the firm's net income is expected to be $1.9 billion, what portion of its net income the frm expected to pay out as dividends? Do not round intermediate calculations. Round your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate =(1 - Payout ratio )ROE %

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