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 $13 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 million, payable at the end of Year 2.

A. Select the project's NPV profile. 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-