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You ace considering corstructing a new plant in a remote widerness area to process the ore from a planned mining operasion. You anticipate that the

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You ace considering corstructing a new plant in a remote widerness area to process the ore from a planned mining operasion. You anticipate that the plant will take a year to buld and cost $96 milion uptront, Once buit, it will qecerate cash fogs of $14 milion per year staring two years from today in 21 years, affer its 20 th year of operabon, the mine will run out of ore and you expect to pey \$134 milion to shut the plant down and restore the area to its pristine state. Using a cost of capital of 13% a. What is the NPV of the project? b. is using the IRR rule reliable for this projoct? Explain. c. What ace the IRRs of this project? a. What is the NPV of the project? The NPV of the project ist milion. (Round to one decimal place)

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