An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t=0 of $8 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t+1 of $12.8 million. Under Plan B, cash flows would be $2 million per year for 12 years. Estimate the crossover rate of the NPVs for Plans A and B. If the firms WACC is 12% what is the NPV of the project you would recommend?

Group of answer choices

14.23% ; $3.43 million

18.26%; $4.51 million

22.89%; $3.43 million

22.89%; $4.39 million

14.23% ; $4.39 million