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

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eBook An oll-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 att 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 12.4%. 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 "o". 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: 9% Find the crossover rate. Do not round Intermediate calculations, Round your answer to two decimal places % the firm would take on all available independent, average-risk projects with returns greater than 12.4%

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