A mining company is deciding whether to open a strip mine with an initial outlay at t $=0$ of $$1\mathrm{.}5$ million. Cash inflows of $$12\mathrm{.}5$ 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\mathrm{.}5$ million, payable at the end of Year $2.$

Select the project's NPV profile.

The correct sketch is A mining company is deciding whether to open a strip mine with an initial outlay at $t=0$ of $$1\mathrm{.}5$ million. Cash inflows of $$12\mathrm{.}5$ 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\mathrm{.}5$ million, payable at the end of Year $2.$

a$.$ Select the project's NPV profile.

$B$

D

$.$

Should the project be accepted if WACC $=10\%?$

Should the project be accepted if WACC $=20\%?$

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?

Does the MIRR method always lead to the same accept$/$reject decision as NPV$?($Hint: Consider mutually exclusive projects that differ in size.$)$