CMC must spend $900,000 for new equipment and pay $165,000 for its installation. The mine will generate an estimated $350,000 each year for the next 5 years, CMC's cost of capital is 14%.

a) what are the project NPV and IRR?

b) should the project be undertaken if environmental impacts were not a consideration?

c) how should environmental effects be considered when evaluating this project, and any other projects? How might these concepts affect the decision in part (b)?