An electric utility is considering a new power plant in northern Arizona. Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit, the plant would be legal; but it would cause some air pollution. The company could spend an additional $35 million at Year 0 to mitigate the environmental problem, but it would not be required to do so. The plant without mitigation would cost $215 million, and the expected cash inflows would be $65 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $85 million. Unemployment in the area where the plant would be built is high, and the plant would provide about 350 good jobs. The risk-adjusted WACC is 10%. a) Calculate the IRR without mitigation. b) Calculate the IRR with mitigation. a)27.69%; b)19.86% a)15.57%; b)20.76% a)20.76%; b)15.57% a)9.43%; b)27.69%