An oil$-$drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at $t=0$ of $$12$ million. Unc

$A,$ all the oil would be extracted in $1$ year, producing a cash flow at $t=1$ of $$14\mathrm{.}4$ million. Under Plan $B,$ cash flows would be $$2\mathrm{.}1323$ million per year $f$

years. The firm's WACC is $12\mathrm{.}9\%.$

a$.$ Construct NPV profiles for Plans A and B$.$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ If an

zero, enter $"0".$ Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two de

places.

Discount Rate

$0\%$

$

$5$

million

$10$

million

$12$

million

$15$

million

$17$

million

$20$

NPV Plan A

million

$

million

million

million

million

million

million

million

NPV Plan B

NPV Plan

million

Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places.

Project A:

$\%$

Project B:

$\%$

Find the crossover rate. Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

b$.$ Is it logical to assume that the firm would take on all available independent, average$-$risk projects with returns greater than $12\mathrm{.}9\%?$