eBook A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of s2 million. Cash inflows of $13 million would occur at the end of Year 1. The land must be returned to its natural state so there is a cash outflow of $11 million, payable at the end of Year 2. a. Select the project's NPV profile. A B D NPV Milions of Dollar NPV (Milions of Dollas 2.5 1.5 NPV Milions of Dollar 2.5 1.5 NPV Milions of Dollas 2. 1.5 1.5 0 OE 0.5 -0.5 0.5 0.5 100200 300 400 500 100 2010 300 400 100 200 300 400 100 200 300 400 WACCO% 500 WACC) 500 WACCO 500 WACC%) The correct sketch is -Select- b. Should the project be accepted if WACC = 10%? -Select- Should the project be accepted if WACC - 20%? -Select- c. What is the project's MIRR at WACC = 10%? Do not round intermediate calculations. Round your answer to two decimal places. % What is the project's MIRR at WACC - 20%? Do not round intermediate calculations. Round your answer to two decimal places. % Does MIRR lead to the same accept/reject decision for this project as the NPV method? -Select- Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.) -Select- Grade it Now Save & Continue Continue without saving