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A mining company le deciding whether to open stru mine, which cours $2.5 millionCon inflows of 13 million would occur at the end of year.

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A mining company le deciding whether to open stru mine, which cours $2.5 millionCon inflows of 13 million would occur at the end of year. The tand must be returned to its natural state at a cost of 331 million payable at the end of Year 2 Mot the project's 5 A CS WACCA 200 0400 WACAN do 200 300 400 WACS) bo 400 WACCA The correct the 1. Thould the project Deco WACC - 10% should the project Decepted WACC - 3097 Think of some pret budgetings in which meativecam ws during at the end of the prolife might lead to moltiples. The input in the box below will not be waded but may be reviewed and considered by your instructor d. What there I WACC - 100 Round your awer o we decimal contround your intermediate calculations What is there I WACC - 20 oud your answer to two decimal places. Do not round your intermediate calculation Does MR lead to the same correct decision for the project as the mathod Dost method wways lead to the same straject declinant Connolly excelets that differ in 1 A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash Inflows of $13 million would occur at the end of Year 1. The land must be returned to its natural state at a cost of $11 million, payable at the end of Year 2. a. Plot the project's NPV profile. A B NEV IM Dola NEV M 29 18 0.5 05 0.5 100 200 300 20-WACC) 200 300 400 WACC) D NV DLE ...) 3 25 25 15 OO NO DOO 0 Ats 100 200 300 400 WACC) do 200 300 400 WACC) - The correct sketch is Select v b. Should the project be accepted if WACC - 10%? Select- Should the project be accepted if WACC - 20%? Select c. Think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life might lead to multiple TRRs. The input in the box below will not be graded, but may be reviewed and considered by your instructor d. What is the project's MIRR at WACC - 10%7 Round your answer to two decimal places. Do not round your intermediate calculations, What is the project's MIRR WACC - 20%? Round your answer to two decimal places. Do not round your intermediate calculations, 96 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 NPV7.cents Consider mutually exclusive projects that differ in size.)

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