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Business, 21.04.2020 00:00 gd9075

A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.23 million per year for 20 years. Plan B requires a $13 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.91 million per year for 20 years. The firm's WACC is 9%. a. Calculate each project's NPV. Round your answer to two decimal places. Plan A $ million ?Plan B $ million ?Calculate each project's IRR. Round your answer to two decimal places. Plan A % ?Plan B % ?b. Graph the NPV profiles for Plan A and Plan B and approximate the crossover rate to the nearest percent?c. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to the nearest hundredth?

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A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expen...
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