$11-8$ CAPITAL BUDGETING CRITERIA: ETHICAL CONSIDERATIONS A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an additional $$10$ million at Year $0$ to mitigate the environmental problem, but it would not be required to do so$.$ Developing the mine $($without mitigation$)$ would cost $$60$ million, and the expected net cash inflows would be $$20$ million per year for $5$ years. If the firm does invest in mitigation, the annual inflows would be $$21$ million. The risk$-$adjusted WACC is $12\%.$

a$.$ Calculate the NPV and IRR with and without mitigation.

b$.$ How should the environmental effects be dealt with when this project is evaluated?

c$.$ Should this project be undertaken? If so$,$ should the firm do the mitigation?

Can you please do this problem on a spreadsheet please.