Solve each and every step with all calculations

10-20 = The Northwest Territories Oil Exploration Company is considering two mutually exclusive Timing differences plans for extracting oil on property for which it has mineral rights. Both plans call for the ex- penditure of $12,000,000 to drill development wells. Under Plan A, all the oil will be extracted in 1 year, producing a cash flow at t = 1 of $14,400,000. Under Plan B, cash flows will be $2,100,000 per year for 20 years. a. Construct NPV profiles for Plans A and B, identify each project's IRR, and indicate the ap- proximate crossover rate. b. Suppose a company has a cost of capital of 12 percent, and it can get unlimited capital at that cost. Is it logical to assume that it would take on all available independent projects (of average risk) with returns greater than 12 percent? Further, if all available projects with re- turns greater than 12 percent have been taken on, would this mean that cash flows from past investments would have an opportunity cost of only 12 percent, because all the firm could do with these cash flows would be to replace money that has a cost of 12 percent? Fi- nally, does this imply that the cost of capital is the correct rate to assume for the reinvest- ment of a project's cash flows