A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of $2.5 million. Cash inflows of $14 million would occur at the end of Year 1. The land must be returned to its natural state so there is a cash outflow of $11.5 million, payable at the end of Year 2. a. Select the project's NPV profile. A B NPV (Millions of Dollars 3 2.5 2 NPV (Millions of Dollars 3 2.5 2 1.5 1 NPV (Millions of Dollars 3 2.5 2 1.5 1 0.5 0 0.5 1.5 1 0.5 0.5 0 0 -0.52 0.5 100 200 300 100 200 300 400 100 200 400-500 WACC% 300 400 400 500 500 WA CC(%) WACC% D NPV (Millions of Dollars 3 2.5 1.5 1 0.5 0.5 100 200 300 400 500 WA CC% The correct sketch is -Select- v. b. Should the project be accepted if WACC = 10%? -Select- Should the project be accepted if WACC = 20%? of Dollars 2.5 1.5 0 0.5 100 200 300 400 500 WACC%) The correct sketch is -Select- b. Should the project be accepted if WACC = 10%? -Select- Should the project be accepted if WACC = 20%? -Select- c. What is the project's MIRR at WACC = 10%? Do not round intermediate calculations. Round your answer to two decimal places. % What is the project's MIRR at WACC = 20%? Do not round intermediate calculations. Round your answer to two decimal places. % Does MIRR lead to the same accept/reject decision for this project as the NPV method? -Select- Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.) -Select- V