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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 $12.4 million. Under Plan A,

image text in transcribed An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t=0 of $12.4 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t=1 of $14.88 million. Under Plan B, cash flows would be $2.2034 million per year for 20 years. The firm's WACC is 12.9%. 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 10.55 . 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

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