You own a coal mining company and are considering opening a new mine. The mine will cost $$118\mathrm{.}2$ million to open. If this money is spent immediately, the mine will generate $$21\mathrm{.}2$ 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\mathrm{.}8$ million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity? If the cost of capital is $7\mathrm{.}6\%,$ what does the NPV rule say? $q,$

$$ C$.$ Reject the opportunity because the IRR is lower than the $7\mathrm{.}6\%$ cost of capital.