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%. 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 A 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 A Cash Flows 0 1-20 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 negative value, if any. $ What is the IRR for this Project A? Round your answer to two decimal places. % C. Graph the NPV profiles for Plan A, Plan B, and Project A. Select the correct graph. A B 150 150 150 125 125 125 100 100 100 A B NPV Millions of Dollars) A 75 75 75+ 50 50 50 B 25 25 25 B A -5 152025 -5 5 20 25 -5 5 10 -25 Cost of capital -50 10 -25 Cost of capital %) -501 5 10 152025 -25 Cost of capital) -501 D 150 125 100- NPVMillions of Dollars) A 75 50 B 25 -5 5 10025 -25 Cost of capital %) -501 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, 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 A 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 A Cash Flows 0 1-20 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 negative value, if any. $ What is the IRR for this Project A? Round your answer to two decimal places. % C. Graph the NPV profiles for Plan A, Plan B, and Project A. Select the correct graph. A B 150 150 150 125 125 125 100 100 100 A B NPV Millions of Dollars) A 75 75 75+ 50 50 50 B 25 25 25 B A -5 152025 -5 5 20 25 -5 5 10 -25 Cost of capital -50 10 -25 Cost of capital %) -501 5 10 152025 -25 Cost of capital) -501 D 150 125 100- NPVMillions of Dollars) A 75 50 B 25 -5 5 10025 -25 Cost of capital %) -501 The correct graph is -Select