Solve a-d

Integrativo-Conflicting Rankings. The High-Flying Growth Company (HFGC) has been expanding very rapidly in recent years, making its shareholders rich in the process rate of return on the stock in the past few years has been 20%, and HFGC managers believe that 20% is a reasonable figure for the firm's cost of capital. To sustain a high grc argues that the company must continue to imvest in projects that offer the highest rate of return possble. Two projects are currenty under reviaw. The first is an expansion of capacity, and the second project involves introducing one of the firm's existing products into a new market. Cash flows from each project appear in the following table: a. Calculate the NPV for both projects. Rank the projects based on their NPVs. b. Calculate the IRR for both projects. Rank the projects based on their IRRs. c. Celculate the PI for both projects. Rank the projects based on their Pis. d. The firm can only afford to undertake one of these investments. What do you think the firm should do? a. The NPV of the plant exparision project is 5 (Round to the nearnst dollar.) Data table The NPV of the plan (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.)