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An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $12.6 million. Under

An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $12.6 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t = 1 of $15.12 million. Under Plan B, cash flows would be $2.2389 million per year for 20 years. The firm's WACC is 11.7%.

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 10.55. 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.

________ %

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