for $5$ years. If the firm does invest in mitigation, the annual inflows would be $$23$ million. The risk$-$adjusted WACC is $12\%.$ decimal places.

NPV: $ $$ million

IRR: $\%$ decimal places.

NPV: $ $$ million

IRR: $$

b$.$ How should the environmental effects be dealt with when this project is evaluated? the company needs to make sure that they have anticipated all costs in the $"$no mitigation" analysis from not doing the environmental mitigation.

II$.$ The environmental effects should be ignored since the mine is legal without mitigation.

III. The environmental effects should be treated as a sunk cost and therefore ignored.

V$.$ The environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur.