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 $$12$ million, payable at the end of Year $2.$

Select the project's NPV profile.

The correct sketch is

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Should the project be accepted if WACC $=10\%?$

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Should the project be accepted if WACC $=20\%?$

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What is the project's MIRR at WACC $=10\%?$ Do not round intermediate calculations. Round your answer to two decimal places.

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What is the project's MIRR at WACC $=20\%?$ Do not round intermediate calculations. Round your answer to two decimal places.

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Does MIRR lead to the same accept$/$reject decision for this project as the NPV method?

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Does the MIRR method always lead to the same accept$/$reject decision as NPV$?($Hint: Consider mutually exclusive projects that differ in size.$)$

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