when calculating npv because it took one year to build, shoudnt cash flow from yr 2 and on be discounted by 1.12^2 instead of 1.12(in the solution)???

.. You are considering constructing a new plant in a remote wilderness area to process the ore from a planned mining operation. You anticipate that the plant will take a year to build and cost $99 million upfront. Once built, it will generate cash flows of $12 million at the end of every year over the life of the plant. The plant will be useless 20 years after its completion once the mine runs out of ore. At that point you expect to pay $141 million to shut the plant down and restore the area to its pristine state. Using a cost of capital of 12%, What is the NPV of the project? b. Is using the IRR rule reliable for this project? Explain. What are the IRR's of this project? Timeline: 21 a. c. ATTENTION Cast 2 you to make D Cash Flow -99 1- 12 0.12 NPV = -99+ 12 12 12 +-141 discount to time o shoulchy in sc 141 $32.02 million 12227 (1.12) 20 a. 1.122 (1.125