An oil-drilling company must choose between two mutually exclusive extraction projects, and each costs $12 million. Under Plan A, all the oil would be extracted in year 1, producing a cash flow of $14.4 million. Under Plan B, cash flows would be $2.1 million per year for 20 years. The firms WACC is 12%. a. Construct NPV profiles for plan A and plan B, identify each projects IRR, and show/find the approximate crossover rate.

*You can use excel to solve, and please show the formulas for the cells you used*