Scale Differences 16. 17. 18. The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $47 million on a large- o integrated plant that will provide an expected cash flow stream of $7 million per year for 20 years. Plan B calls for the expenditure of $13 million to somewhat less efficient, more labor-intensive plant that has an expected cash flow stream of $3.1 million per year for 20 years. The firm's cost of ca 12% a. Calculate each project's NPV. Do not round intermediate calculations. Round your answers to the nearest dollar. Project A: $ 5.3 19 20. 21 Project B: $ 10.16 Calculate each project's IRR. Round your answers to two decimal places. Project A: 13.76 % Project B: 23.50 % b. Set up a Project Aby showing the cash flows that will exist if the firm goes with the large plant rather than the smaller plant. Round your answers nearest dollar. Use a minus sign to enter cash outflows, if any. Year Project A Cash Flows 0 $ 5.29 1-20 13.76 What is the NPV for this project A? Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter negat value, if any. $ 5.29 What is the IRR for this project A? Round your answer to two decimal places 9.66 % c. Select the correct graph for the NPV profiles for Plan A, Plan B, and Project a. A B 250 150 150 125 ons of Dollars 125 ons of Dolbs) of Dollar) 125+ 100 B 100+ 100 25 9.66 % - Select the correct graph for the NPV profiles for Plan A, Plan B, and Project A. A B C 150 150! 150 125 125 125 100 NPV Millions of Dollars) B 100 NPV Millions of Dollars) 100 NPV Millions of Dollars) A 75 75 75 50 50 50 A 25+ 25 25+ B A int 5 -25 Cost of capitak) -501 10 -25 Cost of capital 90 -501 5 10 -25 cost of cap/ta(%) -501 D 150 125 100 NPV Millions of Dolls 75 50 B 25+ A -5 5 10 25 -25 Cost of capitako -501 The correct graph is graph D