BEB is planning the construction of a new loading ramp for its single mill. The initial cost of the investment is $600,000, followed by an investment of $200,000 10 years later and another investment of $200,000 20 years later and finally an investment of $1,000,000 for environmental cleanup at the end of the project 30 years from now. Efficiencies from the new ramp are expected to reduce costs by $50,000 per year (at the end of every year) for the life of the plant, which is currently estimated at another 30 years. These savings can be assumed to be reinvested at a rate of 9% pa.

What is the NPV of the project if BEB has a required rate of return of 7%?

What is the MIRR of the project if the cost of borrowing (with the loading ramp used as collateral) for a period of 10 years is 6% pa and the term structure of borrowing costs for Y years (Y > 15) is 6% + 0.0183*(1 - (1/(Y-9)) pa?