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The Ewert Exploration Company is considering two mutually exclusive plans for extracting oil on property for which it has mineral rights. Both plans call for the expenditure of $9.5 million to drill development wells. Under Plan A, all the oil will be extracted in 1 year, producing a cash flow at t = 1 of $10.5 million; under Plan B, cash flows will be $1.4 million per year for 20 years.

Identify each project's IRR. Round your answers to two decimal places.

Project A %

Project B %

Indicate the crossover rate. Round your answer to two decimal places. %

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Financial Management, Finance

Category:- Financial Management
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