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Scale Differences The Pinkerton Publishing Company is considering two mutually excusive expansion plans. Pl A Calls for the expenditure of $44 million on a large-scale
Scale Differences The Pinkerton Publishing Company is considering two mutually excusive expansion plans. Pl A Calls for the expenditure of $44 million on a large-scale integrated plant that will provide an expected cash flow stream of mi llon per year o 20 years. Plan B calls for the expenditure of $14 million to build a somewhat less efficient more labor-intensive plant that has an expected cash flow stream of 2.7 million per year or 20 years. The firm's cost of capital is g% a. Calculate each project's NPV. Round your answers to the nearest dollar Project A Project B Calculate each project's IRR. Round your answers to two decimal places. Project A Project B set up a Project by showing the cash flows that will exist if the firm goes with the large plant rather than the smaller plant. Year Project Cash Flows 1-20 what is the NPV for this Project ? Round your answer to the nearest dollar. What is the IRR for this Project 4? Round your answer to two decimal places. C. Graph the NPV profiles for Plan A. Plan B, and Project . Select the correct graph. 150 125 100 150 125 100 75 150 125 100 75 150 125 100 75 5 10 25f Cost of capita 5 10 5 10 25f Cost of capita -S0 -25 t ast of capital( -50 -25 t ast ofcapital( -50 The correct graph is -Select
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