Muume incendi Rom (PRK) MULTIPLE IRRS AND MIRR A mining company is deciding whether to open a strip mine, which costs $2 million. Cash inflows of $13.5 million would occur at the end of Year 1. Th land must be returned to its natural state at a cost of $11.5 million, payable at the end of Year 2. a. Plot the project's NPV profile. B A NPV Maior of Doha) NV olol) MONDO MONDO 0 0 0.5 0.5 100 200 300 400 WACC(5) 100 200 300 400 WACC) D NPV of Dobe) NV Mion of Dole 3 25 2 1.5 1 0.5 MOND-no 0.5 0.5 100 200 300 400 WACC% ido200 300 400 WACC) Get Homework Hel... Mind Tap - Cenga 2:06 PN 10/17/20 Search this course 11: End-of-Chapter Problems - The Basics of Capital Budgeting x 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. Think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life might lead to multiple IRRs. The input in the box below will not be graded, but may be reviewed and considered by your instructor gas drilling d. What is the project's MIRR at WACC = 10%? Round your answer to two decimal places. Do not round your intermediate calculations. % What is the project's MIRR at WACC = 20%? Round your answer to two decimal places. Do not round your intermediate calculations. % 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- 206 PN 10/17/20 Get Homework Hel. Mind Tap - Cengag- Bi 15 hp