A company is considering two mutually exclusive expansion plans. Plan A requires a $$39$ million expenditure on a large$-$scale integrated plant that would

provide expected cash flows of $$6\mathrm{.}23$ million per year for $20$ years. Plan B requires a $$12$ million expenditure to build a somewhat less efficient, more

labor$-$intensive plant with an expected cash flow of $$2\mathrm{.}69$ million per year for $20$ years. The firm's WACC is $11\%.$ The data has been collected in the

Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

a$.$ Calculate each project's NPV$.$ Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in

millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$

Plan A: $

million

Plan B: $

million

Calculate each project's IRR. Round your answer to two decimal places.

Plan A:

$\%$

Plan B:

$\%$

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

$\%$Excel Online Structured Activity: NPV profiles

A company is considering two mutually exclusive expansion plans. Plan A requires a $$39$ million expenditure on a large$-$scale integrated plant that would

provide expected cash flows of $$6\mathrm{.}23$ million per year for $20$ years. Plan B requires a $$12$ million expenditure to build a somewhat less efficient, more

labor$-$intensive plant with an expected cash flow of $$2\mathrm{.}69$ million per year for $20$ years. The firm's WACC is $11\%.$ The data has been collected in the

Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

a$.$ Calculate each project's NPV$.$ Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in

millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$

Plan A: $

$5$ million

Plan B: $

million

Calculate each project's IRR. Round your answer to two decimal places.

Plan A:

$\%$

Plan B:

$\%$

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

Plan B: $

$9\mathrm{.}43$

million

Calculate each project's IRR. Round your answer to two decimal places.

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 are equal, Round your answer to two decimal places.

$\%$

d$.$ Why is NPV better than IRR for making capital budgeting decisions that add to shareholder value? The input in the box below will not be graded,

Please help!