A mining company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t=0 of $12 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t+1 of $18.3 million. Under Plan B, cash flows would be $3.2 million per year for 8 years. Estimate the crossover rate of the NPVs for Plans A and B. If the firms WACC is 13% what is the NPV of the project you would recommend?

Group of answer choices

10.96% ; $3.36 million

10.96% ; $4.19 million

11.26%; $5.51 million

10.78%; $3.36 million

10.78%; $4.19 million