A company is considering two mutually exclusive expansion plans. Plan A requires a $30 million expenditure on a large-scale, integrated plant that would provide expected cash flows of $8.9 million per year for 5 years. Plan B requires a $4 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $1.3 million per year for 5 years. The firm's WACC is 12 percent. Calculate each project's NPV

a) NPVA = $2.08 million NPVB = $0.69 million

b)NPVA = $2.08 million NPVB = $0.47 million

c)NPVA = $3.07 million NPVB = $0.69 million

d)NPVA = $3.07 million NPVB = $0.47 million