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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
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.
- Plot the project's NPV profile.
Select the correct graph.
The correct graph is -Select-A B C or D
- Should the project be accepted if r = 8%? -Select-Yes or No Should the project be accepted if r = 14%? -Select-Yes or No
- 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 = 14%? 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 $ =
Does the MIRR method lead to the same accept-reject decision as the NPV method? -Select-Yes or No
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