A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of $1.5 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 $12.5 million, payable at the end of Year 2.

a- Select the project's NPV profile. The correct sketch is (A,B,C or D)

b- Should the project be accepted if WACC = 10%? Yes/No

c-Should the project be accepted if WACC = 20%? Yes/No

d- What is the project's MIRR at WACC = 10%? Do not round intermediate calculations. Round your answer to two decimal places.

e-What is the project's MIRR at WACC = 20%? Do not round intermediate calculations. Round your answer to two decimal places.

f-Does MIRR lead to the same accept/reject decision for this project as the NPV method? Yes/No

g-Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.) Yes/No

ANSWER ALL QUESTIONS (A-G) INCLUDING THE ONES WITH CALCULATIONS make sure to round the answers correctly