The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $47 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%. 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: % 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. Year Project 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 ? Round your answer to two decimal places. % Select the correct graph for the NPV profiles for Plan A, Plan B, and Project . The correct graph is -Select- .

The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $47 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, mole 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: 5 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 poes with the large piant rather than the smaller plant. Round your answers to the nearest dollar. Use a minus sign to enter cash outfiows, if any. What is the Nev 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 Prolect ? Round your answer to two decimal places