A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of $2 million. Cash inflows of $12.5 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 million, payable at the end of Year 2.

Select the project's NPV profile.

The correct sketch is -Select- --> A / B / C / D

Should the project be accepted if WACC = 10%?

-Select- -->Yes / No

Should the project be accepted if WACC = 20%?

-Select- -->Yes / No

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- --> Yes / No

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

-Select- -->Yes / No

Explain how to do the calculations by hand, PLEASE!