1. Wadiya and Melisa Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of \$1 million on a large-scale integrated plant which will provide an expected cash flow stream of $480,000 per year for 3 years. Plan B calls for the expenditure of $350,000 to build a somewhat less efficient more labor-intensive plant which has an expected cash flow stream of $180,000 per year for 3 years. The firm's cost of capital is 12-percent. I. Compute each project's NPV and IRR. II. Which project would you prefer according to IRR? Which project would you prefer according to NPV? III. Is there a conflict in the recommendations of NPV and IRR? If yes, how do you resolve this conflict? IV. What is the source of this conflict? V. Graph the NPV profiles for all the options under consideration VI. At what cost of capital, the conflict between NPV and IRR disappears