BIL С D D E F G H 1 к K L M N N 0 Р R S T V W х 5 A 0 S40.00 1 S8.39 2 $6.39 4 $8.39 B $6.39 7 $8.39 9 $6.39 10 56.29 11

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BIL С D D E F G H 1 к K L M N N 0 Р R S T V W х 5 A 0 S40.00 1 S8.39 2 $6.39 4 $8.39 B $6.39 7 $8.39 9 $6.39 10 56.29 11 38 39 12 $6.39 114 $6.39 13 38 39 15 36.39 18 $8.39 17 $8.39 18 $6.39 19 S8.39 20 $6.39 $6.39 $6.39 $8.39 $15.00 $3.3 $3.36 $ $3.36 $3355 $3.36 $33 $3.36 $3.36 $3.36 $336 $3.36 $3 35 $3.36 $336 $3.36 $3.36 $3.36 $3.30 $3.36 Formulas WNA WNA #NA #NA A B 1 NPV profiles 2 3 WACC 9.00% 4 5 (Dollars in Millions! 6 Plan A 7 9 8 Plan B 9 10 Project NPV Calculatoris: 11 NPVA 12 NPV) 13 14 Project IRR Calculations: 15 IRRA 16 IRRA 12 18 NPV Protes: 19 Discount Rates NPVA 20 $0.00 21 0% 50.00 22 5% $0.00 23 10% $0.00 24 15% $0.00 25 20/% $0.00 25 22% $0.00 27 25% $0.00 28 29 30 31 $1.00 32 $0.90 33 $0.50 NPV. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NPV Profiles 31 SC.20 35 G. Sheet1

R11 А B с D E F G H H 1 ] K L M N 0 P Q R s T W х X 27 25% $0.00 $0.00 NPV Profiles 28 29 30 31 $11 SCO 32 $3.90 33 34 35 36 37 $0.70 $2.60 $2.50 $2.40 39 10% 15% 20% 228 25% % 1 2 5 7 12 D -S40 00 3 $6.99 4 $6.39 Б $6.39 9 $6.39 $ 10 $6.39 11 $639 13 $6.39 14 $6.39 15 $6.39 16 $6.39 17 $6.39 18 $6.39 19 $8.39 20 $6.39 $6.39 $6.39 $5 39 $6.39 $6 39 $6.39 $ -$15.00 53.38 $3.36 $3.36 53.36 $5.35 $3.36 $3.36 $3.36 $8.36 $3.36 33 36 $3.36 33.36 $3.36 3336 $3.36 $3.36 $3.36 S3.38 $3.36 39 $90 40 $120 41 $0.10 42 $0.00 43 0% 54 44 45 Calculation af Crossover Rate 46 47 Plan A 49 49 Plan B B 50 51 Project Delta 52 Formulas 53 54 55 Crossover Rate = IRR . 56 57 58 59 60 61 F F F #NA #NIANIA #NIA INANA ANIA ANAONA NIA #NIA #NAANIA NA NA NA NA NA NA NA NA # Formula #NA Sheet1

Excel Online Structured Activity: NPV profiles A company is considering two mutually exclusive expansion plans. Plan 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 $15 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $3.36 million per year for 20 years. The firm's WACC is 9%. 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 two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 a. Calculate each project's NPV. Round your answers should be entered as 10.55. 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. % 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. Check My Work Reset Problem