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Question 31 George is interested in buying one of the two local businesses on sale a Coffee Shop or a Shoe Store The cashflows of

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Question 31 George is interested in buying one of the two local businesses on sale a Coffee Shop or a Shoe Store The cashflows of both the businesses are shown below George can borrow from a bank at a rate of 7.00% to buy Coffee Shop and 6.00% to buy Shoe Store Coffee Shop Shoe Store Year -$100,000 $100,000 0 (Purchase Price) $7,188 $51,750 $21,562 $38,812 2 $40,250 $28,750 3 $50,315 $21,563 $57,500 $14,375 5 4 How much is the NPV at crossover rate? At the crossover rate, both projects have the same NPV. Enter your answer in the following format + or - 12345, Hint Answer is between 21,509 and 26,527 Question 32 A fertilizer company wants to create an environmentally friendly fertilizer in a new manufacturing plant The manufacturing plant is going to cost $81.60 million in today's dollars. The new fertilizer is likely to produce cash flows of $24 00 million for four years, starting in one year The company can borrow at a rate of 8.00% to build this plant How much is the NPV (net present value), in $ millions of this project? Enter your answer in the following format: + or - 12.34 Hint Answer is between -1.94 and 2.36

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