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Multiple Rates of Return The Ulmer Uranium Company is deciding whether or not to open a strip mine whose net cost is $4.4 million. Net
Multiple Rates of Return The Ulmer Uranium Company is deciding whether or not to open a strip mine whose net cost is $4.4 million. Net cash inflows are expected to be $27.7 million, all coming at the end of Year 1. The land must be returned to its natural state at a cost of $25 million, payable at the end of Year 2. a. Plot the project's NPV profile. Select the correct graph. D 300 100 200 Discount Rate(%) NPV Millions of Dollars) O ON INPV Millions of dollars) 100 200 Discount Rate(% 400 300 Discount Rate(%) \100 100 200 - Discount Rate(% 400 300 400 The correct graph is -Select- b. Should the project be accepted if r = 8%? -Select- Should the project be accepted if r = 16%? -Select- c. What is the project's MIRR at r = 8%? Do not round intermediate calculations. Round your answer to two decimal places. % What is the project's MIRR at r - 16%? Do not round intermediate calculations. Round your answer to two decimal places. Calculate the two NPVs. Do not round intermediate calculations. Round your answers to the nearest cent. 1 2 s Does the MIRR method lead to the same accept-reject decision as the NPV method? -Select
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