eBook Scale Differences The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of 544 million on a large-scale, integrated plant that will provide an expected cash flow stream of $6 million per year for 20 years. Plan B calls for the expenditure of $14 million to build a somewhat less efficient, more labor-intensive plant that has an expected cash flow stream of $2.7 million per year for 20 years. The firm's cost of capital is 9%. a. Calculate each project's NPV. Do not round intermediate calculations. Round your answers to the nearest dollar. Project A: $ Project B: $ Calculate each project's IRR. Round your answers to two decimal places Project A: % Project B: % b. Set up a Project A by showing the cash flows that will exist if the firm goes with the large plant rather than the smaller plant. Round your answers to the nearest dollar. Use a minus sign to enter cash outflows, if any. Year Project A Cash Flows 0 S $ 1-20 $ What is the NPV for this project A? Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter negative value, if any. $ What is the IRR for this project A? Round your answer to two decimal places. % c. Select the correct graph for the NPV profiles for Plan A, Plan B, and Project A. A B D 1501 150 150 150 1251 125 125 125 1 100 100 100+ 100+ NPV Millions of Dollars) 754 75 75 75 N A B 501 501 501 501 25+ 25 25 25 -5 -5 5 10 -25 Cost of capital 5 10 -25 cost of capital) 501 A 5 -25 Cost of cap/call) 501 5 10 -25 cost of capital 50! 501 The correct graph is-Select