Question: Question 5 1 pts A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million initial outlay on a large-scale integrated

 Question 5 1 pts A company is considering two mutually exclusive

Question 5 1 pts A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million initial outlay on a large-scale integrated plant that would provide expected cash flows of $6.4 million per year for 20 years. Plan B requires a $12 million initial outlay to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $2.72 million per year for 20 years. At what value of WACC would both projects have the same NPV? (.e., what is the value of the crossover rate?) 22.00% O 15.03% There is no crossover rate between the two projects. O 11.71%

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