Scale Differences The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $50 million on a large-scale, integrated plant that will provide an expected cash flow stream of $8 million per year for 20 years. Plan B calls for the expenditure of $15 million to build a somewhat less efficient, more labor-intensive plant that has an expected cash flow stream of $3.4 million per year for 20 years. The firm's cost of capital is 10%. 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. Project A Cash Flows Year 0 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. B D D 1501 1501 150 1501 1251 125+ 125 125 A 100A 100+ B 100 A A 100+ NPV Millions of Dollars) NPV Millions of Dollars) NPV Millions of dollars) NPV Millions of Dollars) 75+ 75+ 75+ 75 50 B 50 A 5014 50 B 25+ A 25 25 25 B B -5 1 25 20 -5 5 10 -25 cost of capital %) -501 5 10 -25 cost of capital %) -501 5 10 -25 Cost of capital %) -501 5 10 -25 cost of capital %) -501 The correct graph is -Select