NPV profiles: timing differences

An oil drilling company must choose between two mutually exclusive extraction projects, and each costs $13 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t = 1 of $15.6 million. Under Plan B, cash flows would be $2.31 million per year for 20 years. The firm's WACC is 11.2%. 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

Identify each project's IRR. Round your answers to two decimal places. Project A % Project B % Find the crossover rate. Round your answer to two decimal places. %