A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of $2 million. Cash inflows of $13 million would occur at the end of Year 1. The land must be returned to its natural state so there is a cash outflow of $11.5 million, payable at the end of Year 2. a. Select the project's NPV profile. B NPV (Millions of Dollars 2.5 1.5 NPV (Millions of Dollars 3 2.5 NPV (Millions of Dollar 1.5 2.5 2 1.5 1 0.8 0.5 0.5 0.5 5 -0.5 0.5 100 200 300 400 100 200 300 400 500 100 200 300 400 500 WACC% WACC%) 500 WACC%) D D NPV (Millions of Dollars 2.5 1.5 +0.5 100 200 300 400 500 WACC% The correct sketch is -Select- The correct sketch is -Select- b. Should the project be accepted if WACC = 10%? -Select- Should the project be accepted if WACC = 20%? -Select- c. What is the project's MIRR at WACC = 10%? Do not round intermediate calculations. Round your answer to two decimal places. % What is the project's MIRR at WACC = 20%? Do not round intermediate calculations. Round your answer to two decimal places. % Does MIRR lead to the same accept/reject decision for this project as the NPV method? -Select- Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.) -Select