A company is considering two mutually exclusive expanaion plans. Plan A requires a $$40m.$ lion expenditure on a large$-$acale

intograted plant that would provide expocted cath flowa of $$6\mathrm{.}39$ million par yoar for $20$ yoars. Plan B requires a $$11$ millor

year for $20$ years. The firm's WACC is $11\%.$ The data has been collected in the Microscft Excel Online file below. Open the

spreadshest and perform the required analys's to answer the questions below.

Open spreadshost

a$.$ Caloulste esch project's NPW$.$ Round your arswers to two decimal places. Do not round your intermediate calculations.

Enter your answers in milions. For oxample, an anawer of $$10,590,000$ should be entersd as $10\mathrm{.}55.$

Plan $A_i$$

million

Plan B: $

million

Caloulate esch project's IRR, Round your answer to two decimal plsces.

Plan A; $,16$

Plan B: is

b$.$ By graphing the NPV profiles for Plan A and Plan B$,$ approximate the crossover rate to the nearest percent:

$\frac{1}{2}$

c$.$ Caloulate the creasover rate where the two projects' NPV: are equal, Round your anawor to two decimal place:

$\%$

d$.$ Why is NPV better then IRR for making capital budpeting decisions that add to shareholder value?