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A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash inflows of $13.5 million would occur at the end

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A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash inflows of $13.5 million would occur at the end of Year 1. The land must be returned to its natural state at a cost of $12 million, payable at the end of Year 2. a. Select the project's NPV profile. A NPV (Milion of Dollars 2. 15 93 05 RONIC NPV (Milions of Dollan 23 1.6 08 056 do 200 300 400 500 WACC) 100 do 300 400 500 WACCS C D NPV Milions of Dollar 23 15 NPY Milions of Dollar 25 13 08 05 --- o O GO 100 200 300 200 300 WACC 200 300 400 500 WACON The correct swatch is Select Q Searc Ch 11: Homework_EOC_Capital Budgeting (Basics) 87 05 100 200 30010000 WACCS 87 0.5 100 200 300 400 BOG WACCS 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 - 2097 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 se -Select

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