FORMULA APPROACH ONLY- No Excel or Calculator

An oil-driling company must cheose between two mutually exclusive extraction projects, and each requires an initial outlay at t=0 of 513 milison, Under Pian A, all the ail would be extracted in 1 year, producing a cash flow at t=1 of $15.6 million. Under Plan 8 , cash flows would be $2.31 million per year for 20 years. The firm's WACC is 12% 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. Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimat places. ProjectA:ProjectB:%% Determine the crossover rate. Approximate your answer to the nearest whole number. b. Is it logical to assume that the firm would take on all available independent, averoge-rakk projects with returns greater than 12% ? If all available projects with returns greater than 12% have been undertaken, does this mean that cash flows from past investments have an opportunity cost of anly 12\%, because all the company can do with these cash flows is to replace money that has a cost of 12% ? Does this inply that the WACC is the correct reinvestment rate assumption for a project's cash flows