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Campbell Mining Corporation is considering reopening a copper mine in Namibia. The following data set was obtained for the two options that Campbell can employ to extract the copper:

Year Cash Flow for Surface Mining ( Millions) Cash Flow for Underground Mining ( Millions)

0 -60 -120

1 20 40

2 40 70

3 50 90

4 30 50

5 -15 30

Both options have substantial cash flows at the end of the fifth year, since machinery has to be decommissioned and land must be returned to green field status. The newly appointed financial director of Campbell has decided to replace internal rate of return with modified internal rate of return for investment appraisals within Campbell. Further, the companys cost of capital is 10%. Using the data set provided advance a case for;

i) The most optimal investment choice amongst the two alternatives under consideration

ii) The use of modified internal rate of return in place of internal rate of return