An electric utility is considering a new power plant in northern Anzona-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 $40 million at Year O to mitigate the environmental problem, but it would not be required to do so. The plant without mitigation would cost $210.36 million, and the expected cash inflons would be $70 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $75.47 million. Unemployment in the ares where the plant would be built is high, and the plant would provide about 350 good jobs. The risk adjusted WACC is 19%. a. Calculate the NPV and IRR with mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions. Do not round your intermediate calculations. For example, an answer of s10.550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. million IRR Calculate the NPV and IRR without mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions. Do not round your intermediate caleulations. For example, an answer of s10,550,000 should be antarad as 10.55 million IRR b. How should the environmental effects be dealt with when evaluating this project? I. The environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur II. Tha anvironmental affacts if not mitigatad would result in additional cash flows. Therafora, since the plant is legal ithout mitigation, thare ara no banafits to III. The environmentel effects should be ignored since the plant is legal without mitigation. IV. The environmental effactas should be traatad as a sunk cost and therefore ignored. V. If the utility mitigates for the environmental effects, the project is not acceptable. However, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not g a "no mitigation analysis. mitigating for the environmental effects have been considered in the original analysis c. Should this project be undertaken? I. The project should be undertaken only if they do not mitigate for the environmental effects. However, they want to make sure that they've done the analysis properly due to any ill and additional "costs" that might result from undertaking the project without concern for the environmental impacts. II. The project should be undertaken only under the "mitigation assumption. III. The project should be undertaken since the IRR is positive under both the "mitigation" and "no mitigation" assumptions. IV. The project should be undertaken since the NPV is positive under both the "mitigation and "no mitigation assumptions. V. Even when no mitigaton is considerad the projact has a negativa NPV, so it should not be undertakan