Plan 1: Purchase a new production line, initial investment of $ 25,000,000 is required to make The service life is 5 years, and the depreciation is calculated using the straight-line method. After 5 years, the residual value is $ 6,250,000. The annual sales income for 5 years is $7,000,000, and the annual cash-out cost is $ 300,000. Assume that the plasma dialysis volume is 16%. Discounted restructuring of 10%.

Plan 2: Update the existing production line to meet the new production needs. At the beginning of this program Initially, an investment of $9,750,000 was required to update existing equipment that has no salvage value. updated The production line is impregnated for 5 years, and the depreciation is calculated by the straight-line method. After 5 years, there will be no equipment Residual value. Sales revenue for the first year is $3.9 million. Thereafter, operations will be reduced annually $150,000. The cost is paid at the end of each year, and the first year is $400,000. In the future, through the aging of the old equipment, the cost will increase by $100,000 each year.Under the given conditions, for a period of 5 years:

a. Calculate the annual cash flow of the two plan. Use the net present value method to determine which plan is more desirable. b. Calculate the internal rate of return of the two schemes (take 4 decimal places) c. Calculate the Profitability Index of the two scenarios.