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A mining company is deciding whether to open a strip mine, which costs $2 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 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 $12.5 million, payable at the end of Year 2. a. Select the project's NPV profile. | ** NPV (Millions of Dollars NPV (Millions of Dollars 1 NPV (Millions of Dollars NPV (Millions of Dollars) ************* Ion Ouana - Na ** to eo Ion Ouana NO on oma ******* ***** V H + + ++++ 300 400 500 * 100 200 300 400 500 *** * 100 200 300 400 500 WA CC% * 100 200 300 400 500 WA CC(% WA CC(% WA CC(% ** | The correct sketch is -Select- 7 . 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

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