1. The correct sketch is a, b, c, d?

2. Should the project be accepted if WACC = 10%?

   Yes or no?

   Should the project be accepted if WACC = 20%?

   Yes or no?

3. What is the project's MIRR at WACC = 10%? Do not round intermediate calculations. Round your answer to two decimal places

____%

What is the project's MIRR at WACC = 20%? Do not round intermediate calculations. Round your answer to two decimal places.

_____%

Does MIRR lead to the same accept/reject decision for this project as the NPV method?

Yes or No?

Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.)

Yes or No?

A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of $2.5 million. Cash inflows of $13 million would occur at the end of Year 1. The land must be returned to its natural state so there is a cash outflow of $11.5 million, payable at the end of Year 2. a. Select the project's NPV profile. A B C NPV (Millions of Dollars 3 2.5 NPV (Millions of Dollars NPV (Millions of Dollars 3 2.5 2 1.5 1 0.5 2.5 1. 1.5 1.5 1 0.5 0.5 0.5 0.5 0.5 100 200 300 400 100 200 300 400 100 200 300 400 500 500 WACC(%) 500 WACC(%) WACC(%) D NPV (Millions of Dollars) 3 2.5 2 1.5 1 0.5 [non-M ++++++++++++++++++++ 0.5 100 200 300 400 500 WACC(%)