Question: 19. Problem 10-19 (Multiple Rates of Return) eBook Multiple Rates of Return The Ulmer Uranium Company is deciding whether or not to open a strip

 19. Problem 10-19 (Multiple Rates of Return) eBook Multiple Rates of

19. Problem 10-19 (Multiple Rates of Return) eBook Multiple Rates of Return The Ulmer Uranium Company is deciding whether or not to open a strip mine whose net cost is $4.4 millon. Net cash Inflows are expected to be $27.7 million, all coming at the end of Year 1. The land must be returned to its natural state at a cost of $25 million, payable at the end of Year 2 a. Select the correct graph for the project's NPV profile. D B A 100 200 300 Discount Rate ($ 300 400 100 200 -1 Discount Rate (*) 100 Discount Rate 300200 Discount Rate (9 100 200300 400 3 The correct graph is Select b. Should the project be accepted if r = 7%? Explain your reasoning The project -Select- be accepted because NPV IS Select V Should the project be accepted if r = 11%? Explain your reasoning. The project - Select V be accepted because NPV is Select V. C. What is the project's MIRR at r = 7%? Do not round Intermediate calculations. Round your answer to two decimal places. What is the project's MIRR at r = 11%? Do not round Intermediate calculations. Round your answer to two decimal places. Calculate the two projects' NPVs. Do not round Intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, If any. NPV at r = 7%: $ NPV at r = 11%: $ Does the MIRR method lead to the same accept-reject decision as the NPV method? The MIRR method -Select- to the same accept-reject decision as the NPV method

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