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 $12 millionexpenditure to build a somewhat less efficient, morelabor-intensive plant with an expected cash flow of $2.69 millionper year for 20 years. The firm's WACC is 11%
A.Calculate each project's NPV. Round your answers to twodecimal places. Enter your answers in millions. For example, ananswer of $10,550,000 should be entered as 10.55.
Plan A $ million
Plan B $ million
-.Calculate each project's IRR. Round your answer to two decimalplaces.
Plan A %
Plan B %
b. Graph the NPV profiles for Plan A and Plan B and approximatethe crossover rate to the nearest percent. %
c. Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to the nearest hundredth. %
d. Why is NPV better than IRR for making capital budgetingdecisions that add to shareholder value?

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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 $12 millionexpenditure to build a somewhat less efficient, morelabor-intensive plant with an expected cash flow of $2.69 millionper year for 20 years. The firm's WACC is 11%A.Calculate each project's NPV. Round your answers to twodecimal places. Enter your answers in millions. For example, ananswer of $10,550,000 should be entered as 10.55.Plan A $ millionPlan B $ million-.Calculate each project's IRR. Round your answer to two decimalplaces.Plan A %Plan B %b. Graph the NPV profiles for Plan A and Plan B and approximatethe crossover rate to the nearest percent. %c. Calculate the crossover rate where the two projects' NPVs areequal. Round your answer to the nearest hundredth. %d. Why is NPV better than IRR for making capital budgetingdecisions that add to shareholder value?