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\mathrm{.}33$

million at Year $0$ to mitigate the environmental problem, but it would not be required to do so$.$ Developing the

mine $($without mitigation$)$ would require an initial outlay of $$63$ million, and the expected cash inflows would

be $$21$ million per year for $5$ years. If the firm does invest in mitigation, the annual inflows would be $$22$

million. The risk$-$adjusted WACC is $14\%.$

a$.$ 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 $10\mathrm{.}55.$ Do not round intermediate calculations. Round your answers

to two decimal places.

NPV: $

million

IRR:

$\%$

Calculate the NPV and IRR without mitigation. Enter your answer for NPV in millions. For example, an

answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not round intermediate calculations. Round your

answers to two decimal places.

NPV: $

million

IRR:

$\%$