You own a coal mining company and are considering opening a new mine. The mine will cost $118.8 million to open. If this money is spent immediately, the mine will generate $19.5 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $1.7 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity? If the cost of capital is 8.3%, what does the NPV rule say? Discount Rate(%) What does the IRR rule say about whether you should accept this opportunity? (Select the best choice below.) O O A. The IRR is 8.58%, so accept the opportunity B. Reject the opportunity because the IRR is lower than the 8.3% cost of capital OC. Accept the opportunity because the IRR is greater than the cost of capital OD. There are two IRRs, so you cannot use the IRR as a criterion for accepting the opportunity The NPV using the cost of capital of 8.3% milion (Round to three decimal places) The plot of the NPV as a function of the discount rate is n-shaped. It intersects the x-axis atre 2.57% and choice below.) 8,58% What does the NPV rule say? (Select the best O A. the opportunity cost of capital is between a 2.57% and 8.58%, the investment should be undertaken OB. Reject the project because the NPV is negative O C the opportunity cost of capital is greater than 8.58%, the investment should be undertaken OD. the opportunity cost of capital is less than 2.57%, the investment should be undertaken Click to select your answers Save for I 100.J), Wild does the NPV rule say? I purpotuny. What does the IRR Use the graph below to determine the IRR(s) in the problem. NPV of the Investment in the Coal Mine NPV ($ millions) 15 Discount Rate (%) What does the IRR rule say about whether you should accept this opportunity? (Select the best choice Click to select your answer(s). Save for Later