. 0) ng acts . Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7.400 per year for 5 years. Calculate the two projects NPV, IRRS, MIRRS, and Pls, assuring a cost of capital of 12%. Which project would be selected, assum- ing they are mutually exclusive, using each ranking mahad? Which should actually be selerted? . . . (10-12) IRR Analysis . After discovering a new gold vein in the Colorado mountains, CTC Mining Corpo- ration must decide whether to go ahead and develop the deposit. The most cost- effective method of mining gold is sulfuric acid extraction, a process that could result in environmental damage. Before proceeding with the extraction, CTC must spend $900,000 for new mining equipment and pay $165,000 for its installation. The gold mined will net the firm an estimated $350,000 each year for the 5-year life of the vein. CTC's cost of capital is 14%. For the purposes of this problem, assume that the cash inflows occur at the end of the year. 1. What are the project's NPV and IRR h. Should his project be undertaken if environmental impacts were not a consideration