CAPITAL BUDGETING CRITERIA: EIHICAL CONSIDERATIONS A mining COmpiny: is coneblenig a new proiect Becanse the mine has received a permit, the ptoject would be legral: s$10$ milion at Year $0$ fo mitigate the environmental problem, but it would not be required to da$-$sa$.$ Developing the mine $($without mitigation$)$ would cost $500$ milion, and the expecied as infows would be $$20$ million per year for $5$ yours if the fim does invist in mitigation, the annial inflowe ivould be $521$ million. The risk$-$adjusted WACC is $12\%$

a Crkculate the NPY and IRK with and without mitigpation.

i$.$ How should the envinomental effects be dealt with when this proyect s evaluated?

c Should this project be undertaken' If so$,$ should the firm do the mitigation?