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nina288
nina288
14.12.2019 • 
Business

Acompany 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 $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.69 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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