The Diamond Division is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8, 500,000. Expected annual net cash inflows are $1, 525,000, with zero residual value at the end of 10 years. Plan B would begin producing a new product at a cost of $8, 300,000. This plan is expected to generate net cash inflows of $1, 070,000 per year for 10 years, the estimated useful life of the product line. Estimated residual value for Plan B is zero. The Diamond Division uses straight-line depreciation and requires an annual return of 10%. a. For both plans compute the: i. Payback Period ii. Simple rate of return (aka the accounting rate of return) iii. NPV (assume Plan B residual value is $990,000) iv. Profitability index. b. Compute the estimated IRR of Plan A. c. The Diamond Division must rank the plans and make a recommendation to Wayne Wampus. Which expansion plan should the Wampus Warriors recommend? Why