icel Online Structured Activity: NPV profiles company is considering two mutually exclusive expansion plans. Plan...
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icel Online Structured Activity: NPV profiles company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would rovide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $11 million expenditure to bulld a somewhat less efficient, more labo atensive plant with an expected cash flow of $2.47 million per year for 20 years. The firm's WACC is 9%. The data has been collected in the Microsoft sxcel Online file below, Open the spreadsheet and perform the required analysis to answer the questions below. a. Calculate each project's NPV, Round your answers to two decimal places, Do not round your intermediate calculations. Enter your answers in mililions. For example, an answer of $10,550,000 should be entered as 10.55. Pian Ais mulion Plan B: $ mililon Calculate each project's IRR. Round your answer to two decimal places, Ptan A: Plan B: b. By graphing the NPV profies for Plan A and Plan B, approximate the crossover rate to the nearest percent. c. Caiculate the crossover rate where the two projects' Npvs are equal, Round your answer to two decimal pleces

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