Acompany 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 $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.69 million per year for 20 years. the firm's wacc is 9%.calculate each project's npv. round your answers to two decimal places. enter your answers in millions. for example, an answer of $10,550,000 should be entered as 10.55.plan a $ millionplan b $ millioncalculate each project's irr. round your answer to two decimal places. plan a %plan b %graph the npv profiles for plan a and plan b and approximate the crossover rate to the nearest percent.%calculate the crossover rate where the two projects' npvs are equal. round your answer to the nearest hundredth.%

Find the interest rate for a $4000 deposit accumulating to $5234.58, compounded quarterly for 9 years

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.