Scale Differences

The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $$56$ million on a large$-$scale, integrated plant that will provide an expected cash flow stream of $$9$ million per year for $20$ years. Plan B calls for the expenditure of $$12$ million to build a somewhat less efficient, more labor$-$intensive plant that has an expected cash flow stream of $$3\mathrm{.}8$ million per year for $20$ years. The firm's cost of capital is $11\%.$

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 if 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.

$\backslash$table$[[$Year$,$Project $$ Cash Flows$],[0,$$