$$A$$company$$is$$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$$$$6\mathrm{.}39$million$$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

$$$$2\mathrm{.}69$million$$per$$year$$for$20$years$.$The$$firm$\text{'}$s$$WACC$$is$9\%.$