Division D is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8,550,000. Expected annual net cash inflows are $1,625,000, with zero residual value at the end of 10 years. Under Plan B, Division D would begin producing a new product at a cost of $8,000,000. This plan is expected to generate net cash inflows of $1,090,000 per year for 10years, the estimated useful life of the product line. Estimated residual value for Plan B is $1,200,000. Division D uses straight-line depreciation and requires an annual return of 9%.

Caclulate the NPV (net present value) of each plan. Begin by calculating the NPV of Plan A.

Years	Net Cash Inflow	Annuity PV Factor (i=9%, n=10)	PV Factor (i=9%,n=10)	Present Value
1-10 Present Value of Annuity	?	?		?
10 Present Value of Annuity	?		?	?
Total PV of Cash inflows				?
0 Initial Investment				?
Net Present Value				?

Calculate the NPV of Plan B.