the oil would be extracted in $1$ year, producing a cash flow at $t=1$ of $$13\mathrm{.}2$ million. Under Plan B$,$ cash flows would be $$1\mathrm{.}9546$ million per year for $20$ years. The firm's WACC is $11\mathrm{.}4\%.$

$10.$

$11.$

$12.$

a$.$ Construct NPV profiles for Plans A and B$.$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ If an amount is zero, enter $"0".$ Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places.

Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places.

Project A: $\%$

Project B: $\%$

Determine the crossover rate. Approximate your answer to the nearest whole number.

$\%$

b$.$ Is it logical to assume that the firm would take on all available independent, average$-$risk projects with returns greater than $11\mathrm{.}4\%?$

$$

$12$

An oil$-$drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at $t=0$ of $$11$ million. Under Plan $A,$ all the oil would be extracted in $1$ year, producing a cash flow at $t=1$ of $$13\mathrm{.}2$ million. Under Plan B$,$ cash flows would be $$1\mathrm{.}9546$ million per year for $20$ years. The firm's WACC is $11\mathrm{.}4\%.$

a$.$ Construct NPV profiles for Plans A and B$.$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ If an amount is zero, enter $"0".$ Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places.

$\backslash$table$[[$Discount Rate,,Plan A$,,$NPV Plan B$],[0\%,$$$,3$ million,$$,B$ million$],[5,,x_{\text{m}\text{i}\text{l}\text{l}\text{i}\text{o}\text{n}},,{}_{\text{m}\text{i}\text{l}\text{l}\text{i}\text{o}\text{n}}$