Integrative: Contlieting Rankings The High-Flying Growth Company (HFGC) has been expanding very rapidly in recent years, making its shareholders rich in the process. The average annual rate of return on the stock in the past few years has been 22%, and HFGC managers beleve that 22% is a reasonable figure for the firm's cost of captal. To sustain a high growth rate, HFGC's CEO argues that the company must continue to irvest in projects that offer the highest rate of return possible. Two projects are currently under review. The first is an expansion of the firmis production capacity, and the second project involves introducing one of the firm's products into a new market. Cash flows from each project appear in the following table: a. Calculate the NPV for both projects. Rank the projects based on their NPVs. b. Calculate the IFR for both projects. Rank the projects based on their IFRs c. Calculate the Pi for both projects. Rank the projects based on their Pis. d. The firm can undertake only one investment. What do you think the firm should do? a. The NPV of the plant expansion project is s (Round to the nearnst dollar) The NPV of the product introduction project is 4 (Round to the nearest dollar.) According to the NPV method, which project should the firm choose? (Select the best answer below.) Product introduction Plant expansion b. The IRR of the plant expansion project is N. (Round to two decimal places) The IRR of the product introduction project is K. (Round to Wo decimal places.) Acoording to the IRR method, which project should the frm choote? (Select the bent answer below.) Plant expansion Product introduction c. The Pl of the plant expansion projoct is (Round to two decimal places.) The Pl of the product introduction project is (Round to two decimal places.) According to the PI method, which project should the Ifrm choose? (Select the best answer below.) Product introduction Plant expansion d. If the firm can only afford to undertake one of these investments, which project should the firm choose? (Select the best answer below.) Plant expansion Product introduction c. Calculate the Plfor d. The firm can underth Data table (Click on the icon here :o. in order to copy the contents of the data table below According to the IRR m into a spreadsheet.) Plant expansion Product introducti c. The Pl of the plant e The Pi of the product in According to the P1 met Product introducti Plant expansion d. If the firm can only afford to undertake one of these inwestments, which projoct should the firm choose? (Select the best answer below.) Plant expansion Product introduction