1) (25 points) The Parrish Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $40 million on a large-scale, integrated plant that will provide an expected cash flow stream of $6.4 million per year for 20 years. Plan B calls for the expenditure of $13 million to build a somewhat less efficient, more labor-intensive plant that has an expected cash flow stream of $2.75 million per year for 20 years. Parrish's cost of capital is 10%. a. Calculate each project's NPV and IRR. b. Calculate the Fisher intersection c. Graph the NPV profiles for Plan A and Plan B. Include in the graph the IRR values for both projects, the NPV for both projects at the Fischer intersection point and the vertical intersection for both projects. d. Which project do you recommend? Give a logical explanation, based on reinvestment rates and the IRRs you calculated, as to why the NPV method is better than the IRR method when the firm's cost of capital is fixed at some value such as 10%. e. Calculate the MIRR for each project. f. At 10% required return what is the EA for each project