NEED ANSWER ASAP PLEASE!

You own a coal mining company and are considering opening a new mine. The mine itself will cost $117 million to open. If this money is spentimmediately, the mine will generate $19 million for the next 10 years. Afterthat, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $1.7 million per year in perpetuity. What does the IRR rule say about whether you should accept thisopportunity?

(Hint: Consider the number of sign changes in the cash flows.) If the cost of capital is 7.5%, what does the NPV rulesay?

What does the IRR rule say about whether you should accept thisopportunity? (Select the best choicebelow.)

A.The IRR is 8.18%, so accept the opportunity.

B.There are twoIRRs, so you cannot use the IRR as a criterion for accepting the opportunity.

C.Accept the opportunity because the IRR is greater than the cost of capital.

D.Reject the opportunity because the IRR is lower than the 7.5% cost of capital.