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A natural gas energy company must choose between two mutuallyexclusive extraction projects, and each costs $12 million. UnderPlan D, all the natural gas would be extracted in 1 year, producinga cash flow at t = 1 of $14.4 million. Under Plan E, cash flowswould be $2.1 million per year for 20 years. The firm’s WACC is13%.a. Construct NPV profiles for Plans D and E, identify eachproject’s IRR, and show the approximate crossover rate.b. Is it logical to assume that the firm would take on allavailable independent, average-risk projects with returns greaterthan 13%? If all available projects with returns greater than 13%have been undertaken, does this mean that cash flows from pastinvestments have an opportunity cost of only 13% because all thecompany can do with these cash flows is to replace money that has acost of 13%? Does this imply that the WACC is the correctreinvestment rate assumption for a project’s cash flows?Please show all calculations.