A mining company is deciding whether to open a strip mine, which costs $2 million. Cash inflows of $14 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.

1. Select the project's NPV profile. The correct sketch is - Pick A, B, C, or D.
3. Should the project be accepted if WACC = 10%? Yes or No Should the project be accepted if WACC = 20%? Yes or No
5. 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? Yes or No Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.) Yes or No