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The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $44 million on a large-scale, integrated plant

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The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $44 million on a large-scale, integrated plant that will provide an expected cash flow stream of $6 million per year for 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 for 20 years. The firm's cost of capital is 9%. a. Calculate each project's NPV. Do not round intermediate calculations. Round your answers to the nearest dollar. Project A: $ 11 Project B: $ 11 Calculate each project's IRR. Round your answers to two decimal places. Project A: 16.36 % he smaller plant. Round your Project B: 14.08 % b. Set up a Project A by showing the cash flows that will exist the firm goes with the large plant rather tha answers to the nearest dollar. Use a minus sign to enter cash outflows, if any. Year Project A Cash Flows 0 1-20 What is the NPV for this project A? Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter negative value, if any. $ What is the IRR for this project A? Round your answer to two decimal places. % C. Graph the NPV profiles for Plan A, Plan B, and Project A. Select the correct graph. B 150 150 125 125 100 100 NPV Millions of Dollars) NPV Millions of Dollars) 75 A 75 4 50 50 25 25+ B + -5 -5 20_25 5 10 -25 Cost of capital) -501 10 -25 Cost of capital) -501 D 150 150 125 125 100 100 NPV Millions of Dollars) NPV Millions of Dollars) 75 75 B A 50+ 50+ 25 25+ -5 5 -5 10 -25 Cost of capitak %) 5 10 -25 Cost of capital -501 -501 The correct graph is -Select

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