16. Problem 11.09 (Capital Budgeting Criteria: Ethical Considerations) ebook An electric velity is considering a new power plant in northern Arizona, Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit, the plant would be legal; but it would cause some air pollution. The company could spend an additional $40 million at Year O to mitigate the environmental problem, but it would not be required to do so. The plant without mitigation would require an initial outlay of $240.09 million, and the expected cash inflows would be $80 milion per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $84.03 million Unemployment in the area where the plant would be built is high, and the plant would provide about 350 good jobs. The risk adjusted WACC IS 18% 2. Calculate the NPV and IRR with mitigation. Enter your answer for NPV in millions. For example, an answer of $10,550,000 should be entered as 10.55. egative values, if any, should be indicated by a minus non. Do not found intermediate calculations. Round your answers to two decimal places NOVI million IRR: Calculate the NPV and IRR without mitigation, Enter your answer for NPV in millons. For example, an answer of $10,550,000 should be entered as 10.55 The gative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal places. NDVS million IRE: b. How should the environmental effects be dealt with when evaluating this project