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

$100

million upfront. Once built, it will generate cash flows of

$14

million per year starting two years from today. In

21

years, after its

20th

year of operation, the mine will run out of ore and you expect to pay

$180

million 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 project? Explain.

c. What are the IRRs of this project?

a. What is the NPV of the project?

The NPV of the project is

$nothing

million. (Round to one decimal place.)