NPV profiles: timing differences

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 1 year, producing a cash flow at t = 1 of $14.4 million. Under Plan B, cash flows would be $2.1323 million per year for 20 years. The firm's WACC is 11.3%.

1. Construct NPV profiles for Plans A and B. Round your answers to two decimal places. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55.

   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