Question: can you please help me solve this ? Excel Online Structured Activity: NPV profises A company is considering two mutually exclusive expansion plans. Flan A



Excel Online Structured Activity: NPV profises A company is considering two mutually exclusive expansion plans. Flan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $13 million expenditure to build a somewhat less efficlent, more laborintensive plant with an expected cash flow of $2.91 million per year for 20 years. The firm's WaCC is 10%. 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 spresdsheet a. Calculate each project's NPV. Round your answers to two decimal places. Do not round youc intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 shouid be entered as 10.55 . PlanA:5PlanB:5milionmilion Calculate each project's IRR. Round your answer to two decimal places. Plan A: Plan B: b. By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent. manoris, ror exampie, an answer or 314,324 , uvu snoulu de entereo as 14.25. PlanA:$PlanB:$millionmalion Calculate each project's IRR. Round your answer to two decmal 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, but may be reviewed and considered by your instructor.
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