"yolig Techniques (HW) Save Score: 0 of 1 pt 7 of 8 (4 complete) HW Score: 45%, 3.6 of 8 pts P10-27 (similar to) Question Help Integrative-Conflicting Rankings The High-Flying Growth Company (HFGC) has been expanding very rapidly in recent years, making its shareholders rich in the process. The average annual rate of return on the stock in the past few years has been 24%, and HFGC managers believe that 24% is a reasonable figure for the firm's cost of capital. To sustain a high growth rate, HFGC's CEO argues that the company must continue to invest in projects that offer the highest rate of retum possible. Two projects are currently under review. The first is an expansion of the firm's production 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. Calculate the PI for both projects. Rank the projects based on their Pls. d. The fina can only afford to undertake one of these investments. What do you think the firm should do? a. The NPV of the plant expansion project is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. 9 parts remaining Clear All Check Answer UUUU. 0, and The aveldye annual rate of return on the stock in the past few y ate, HEN f Data Table 2. Two project n the fd Jain a X late of and ti ch pro (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below ulate the ulate the ulate the finn car Year 0 1 VPV of Plant expansion - $3,100,000 $1,500,000 $1,500,000 $2,750,000 $1,750,000 2 3 Product introduction - $500,000 $300,000 $300,000 $400,000 $400,000 Print Done ur answer in the answer box and then click Check Answer. Clear All Check Answer ining AUG 9