A company is considering two mutually exclusive expansion plans. Plan A requires a $$40$ million initial outlay on a large$-$scale integrated plant that

would provide expected cash flows of $$6\mathrm{.}39$ million per year for $20$ years. Plan B requires a $$15$ million initial outlay to build a somewhat less efficient,

more labor$-$intensive plant with expected cash flows of $$3\mathrm{.}36$ million per year for $20$ years. The firm's WACC is $9\%.$

a$.$ Calculate each project's NPV$.$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not round

intermediate calculations. Round your answers to two decimal places.

Plan A: $

million

Plan B: $

million

Calculate each project's IRR. Round your answers to one decimal place.

Plan A:

$\%$

Plan B:

$\%$

b$.$ By graphing the NPV profiles for Plan A and Plan B$,$ determine the crossover rate. Approximate your answer to the nearest whole number.

$\%$

c$.$ Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to one decimal place.

$\%$

d$.$ Is NPV better than IRR for making capital budgeting decisions that add to shareholder value?