6 NPV PROFILES: SCALE DIFFERENCES A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million initial outlay on a large-scale integrated plant that would provide expected cash flows of $6.4 million per year for 20 years. Plan B requires a $12 million initial outlay to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $2.72 million per year for 20 years. The firm's WACC is 10%. a. Calculate each project's NPV and IRR. b. Graph the NPV profiles for Plans A and B and approximate the crossover rate. c. Calculate the crossover rate where the two projects' NPVs are equal. d. Why is NPV better than IRR for making capital budgeting decisions that add to shareholder value