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berg A mining company is deciding whether to open a strip mine, which costs $1.5 million. Cash inflows of $13 million would occur at the

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berg A mining company is deciding whether to open a strip mine, which costs $1.5 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 $12.5 million, payable at the end of Year 2. a. Plot the project's NPV profile. A B NPV (Millions of Dollars) NPV (Millions of Dolla) NPV (Millions of Dollas) 3 2.5 2 1.5 2.5 21 1.5 3 2.5 2 1.5 0.5 + 0.5 0 0.5 0.5 0.5 100 200 300 400 WACC(%) 100 200 300 400 WA CC(%) 100 200 300 400 WACC(%) D NPV (Millions of Dollas) 3 2.5 1.5 0.5 0 0.5 100 200 300 400 WACC(%) The correct sketch is c d. What is the project's MIRR at WACC = 10%? Round your answer to two decimal places. Do not round your intermediate calculations. % What is the project's MIRR at WACC = 20%? Round your answer to two decimal places. Do not round your intermediate calculations. %

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