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A mining company is dedding whether to open a strip mine with an initial outlay att- of $2 million. Cash inflows of $14 million would

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A mining company is dedding whether to open a strip mine with an initial outlay att- of $2 million. Cash inflows of $14 million would occur at the end of Year 1 The tand must be returned to its natural state so there is a cash outflow of $12.5 million, pavable at the end of Year 2. a. Select the project's NPV profile B NPV Milion NPV Milions of Dalitas 2 of Dola 0 05 05 00 200 300 400 DO 200 300 400 000 WACC 500 WACC) D NY (M D NPV Milo Dallas 05 900 200 300 200500 WACCS 200 300 400 500 WACOM The correct sketch is Select b. Should the project be accepted if WACC = 10%? Select Should the project be accepted if WACC - 20%? 1-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 WAOC - 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? -Set Does the MERR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size)

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