Business, 16.10.2020 04:01 tragicteekaay

A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 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%.Calculate each project's NPV. Round your answers to two decimal places. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55.Plan A $ millionPlan B $ millionCalculate each project's IRR. Round your answer to two decimal places. Plan A %Plan B %Graph the NPV profiles for Plan A and Plan B and approximate the crossover rate to the nearest percent. 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 $40 million expen...

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