A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million expenditure...

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A company is considering two mutually exclusive expansion plans.Plan A requires a $41 million expenditure on a large-scaleintegrated plant that would provide expected cash flows of $6.55million per year for 20 years. Plan B requires a $11 millionexpenditure to build a somewhat less efficient, morelabor-intensive plant with an expected cash flow of $2.47 millionper year for 20 years. The firm's WACC is 10%.
a. Calculate each project's NPV. Round your answers to twodecimal places. Do not round your intermediate calculations. Enteryour answers in millions. For example, an answer of $10,550,000should be entered as 10.55.
Plan A $ ___ million
PlanB $ _ million
Calculate each project's IRR. Round your answer to two decimalplaces.
Plan A _ %
Plan B %
b. By graphing the NPV profiles for Plan A and Plan B,approximate the crossover rate to the nearest percent. %
c. Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to two decimal places. %
d. Why is NPV better than IRR for making capital budgetingdecisions that add to shareholder value? The input in the box belowwill not be graded, but may be reviewed and considered by yourinstructor. ___________

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A company is considering two mutually exclusive expansion plans.Plan A requires a $41 million expenditure on a large-scaleintegrated plant that would provide expected cash flows of $6.55million per year for 20 years. Plan B requires a $11 millionexpenditure to build a somewhat less efficient, morelabor-intensive plant with an expected cash flow of $2.47 millionper year for 20 years. The firm's WACC is 10%.a. Calculate each project's NPV. Round your answers to twodecimal places. Do not round your intermediate calculations. Enteryour answers in millions. For example, an answer of $10,550,000should be entered as 10.55.Plan A $ _____ millionPlanB $ _____ millionCalculate each project's IRR. Round your answer to two decimalplaces.Plan A _____ %Plan B ________ %b. By graphing the NPV profiles for Plan A and Plan B,approximate the crossover rate to the nearest percent. ________%c. Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to two decimal places. ________ %d. Why is NPV better than IRR for making capital budgetingdecisions that add to shareholder value? The input in the box belowwill not be graded, but may be reviewed and considered by yourinstructor. _________________