Tohmer Inc. is considering building a new manufacturing plant. Plant A has state-of- the-art equipment and will cost $50 million and provide cash flows of $8 million per year for 20 years. Plant B is less efficient and will cost $15 million and provide cash flows of $3.4 million per year for 20 years. The cost of capital is 9.2 %. Calculate the NPV and the IRR for each plan. Hint: calculate the PV of the cash flows and subtract CFO to get NPV. Use NPV to calculate IRR. Which plant would you choose? Why?