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 $ 97 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 $143 million to shut the plant down and restore the area to its pristine state. Using a cost of capital of 12%:

a) what is NPV of this project

b. Is using the IRR rule reliable for this project? Explain.(Select the best choice below.)

A Yes, the IRR rule is reliable, because the project has a negative cash flow that comes after the positive ones.

B.Yes, the IRR rule is reliable, because the project has a negative net present value.

C.No, the IRR rule is not reliable, because the project has a negative cash flow that comes after the positive ones.

D. No, the IRR rule is not reliable, because the project has a negative net present value.

c. What are the IRRs of this project?

The IRRs of this project in ASCENDING order are ___% and ___%. (Round to two decimal places.)