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A company is considering two mutually exclusive expansion plans. Plan A requires a $$40$ million initial outlay on a large$-$scale integrated plant that would provide expected cash flows of $$6\mathrm{.}39$ million per year for $20$ years. Plan B requires a $$12$ million initial outlay to build a somewhat less efficient, more labor$-$intensive plant with expected cash flows of $$2\mathrm{.}69$ million per year for $20$ years. The firm's WACC is $9\%.$

a$.$ Calculate each project's NPV$.$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not round intermediate calculations. Round your answers to two decimal places.

Plan A: $ $$ million

Plan B: $ $$ million

Calculate each project's IRR. Round your answers to one decimal place.

Plan A: $\%$

Plan B: $\%$

b$.$ By graphing the NPV profiles for Plan A and Plan B$,$ determine the crossover rate. Approximate your answer to the nearest whole number.

$\%$

c$.$ Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to one decimal place.

$\%$

d$.$ Is NPV better than IRR for making capital budgeting decisions that add to shareholder value?

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