An oil$-$drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t $=0$ of $$12\mathrm{.}2$ million. Under Plan A$,$ all the oil would be extracted in $1$ year, producing a cash flow at t $=1$ of $$14\mathrm{.}64$ million. Under Plan B$,$ cash flows would be $$2\mathrm{.}1678$ million per year for $20$ years. The firm's WACC is $11\mathrm{.}8\%.$

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

Discount Rate NPV Plan A NPV Plan B

$0\%$ $

million $

million

$5$

million

million

$10$

million

million

$12$

million

million

$15$

million

million

$17$

million

million

$20$

million

million

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

Project A:

$\%$

Project B:

$\%$

Determine the crossover rate. Approximate your answer to the nearest whole number.

$\%$

Is it logical to assume that the firm would take on all available independent, average$-$risk projects with returns greater than $11\mathrm{.}8\%?$

$-$Select$-$

If all available projects with returns greater than $11\mathrm{.}8\%$ have been undertaken, does this mean that cash flows from past investments have an opportunity cost of only $11\mathrm{.}8\%,$ because all the company can do with these cash flows is to replace money that has a cost of $11\mathrm{.}8\%?$

$-$Select$-$

Does this imply that the WACC is the correct reinvestment rate assumption for a project's cash flows?

$-$Select$-$