Scale Differences The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of 547 million on a large-scale, 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 build a 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 capital is 12%. a. Calculate each project's NPV. Do not round Intermediate calculations. Round your answers to the nearest dollar Project A: $ Project B: $ Calculate each project's IRR. Round your answers to two decimal places. Project A: % % Project B: b. Set up a Project by showing the cash flows that will exist in the firm goes with the large plant rather than the smaller plant. Round your answers to the nearest dollar. Use a minus sign to enter cash outflows, if any. Year Project A Cash Flows 0 1-20 What is the NPV for this project ? Do not round intermediate calculations, Round your answer to the nearest dollar. Use a minus sign to enter negative value, if any. $ What is the IRR for this Project A7 Round your answer to two decimal places 96 c. Graph the NPV profiles for Plan A, Plan B, and Project Select the correct graph. 150 (o 1501 C. Graph the NPV profiles for Plan A, Plan B, and Project A. Select the correct graph. A B 1504 1251 125 100 100 NPV Milliom of Dollar NPV Millions of Dollar) 75 4 75 501 50 25+ 25 A 5 10 25+ Cost of capital 501 5 10 -25 cost of cap/ 501 D 150! 1504 1254 125 100 NPV Millions of Dolbs) 100 A NPV Millions of Dollars 75 757 50 50 25 A A 5 10 -25 Cost of cap/) 50 10 -25 Cost of capta) -501 The correct graph is Seed