An oil-drilling company must choose between two mutuallyexclusive extraction projects, and each costs $12 million. UnderPlan A, all the oil would be extracted in 1 year, producing a cashflow at t = 1 of $14.4 million. Under Plan B, cash flows would be$2.1323 million per year for 20 years. The firm's WACC is11.4%.

1. Construct NPV profiles for Plans A and B. Round your answers totwo decimal places. Do not round your intermediate calculations.Enter your answers in millions. For example, an answer of$10,550,000 should be entered as 10.55. If an amount is zero enter"0". Negative value should be indicated by a minus sign.

   Discount Rate	NPV Plan A	NPV Plan B
   0%	$  million	$  million
   5	million	million
   10	million	million
   12	million	million
   15	million	million
   17	million	million
   20	million	million

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

   Project A  %

   Project B  %

   Find the crossover rate. Round your answer to two decimal places.Do not round your intermediate calculations.
   %
2. 
   
3. Is it logical to assume that the firm would take on allavailable independent, average-risk projects with returns greaterthan 11.4%?
   -Select-YesNo
   
   If all available projects with returns greater than 11.4% have beenundertaken, does this mean that cash flows from past investmentshave an opportunity cost of only 11.4%, because all the company cando with these cash flows is to replace money that has a cost of11.4%?
   -Select-YesNo
   
   Does this imply that the WACC is the correct reinvestment rateassumption for a project's cash flows?