Check My Work (5 remaining) Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: Internal Rate of Return (IRR) CAPITAL BUDGETING CRITERIA: ETHICAL CONSIDERATIONS the annual inflows would be $21 million. The risk-adjusted wACC is 13%. 10.55. NPV:IRRmillion% 10.55. NPV:IRRmillion% b. How should the environmental effects be dealt with when this project is evaluated? I. The environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. company needs to make sure that they have anticipated all costs in the "no mitigation" analysis from not doing the environmental mitigation. III. The environmental effects should be ignored since the mine is legal without mitigation. IV. The environmental effects should be treated as a sunk cost and therefore ignored. V. The environmental effects if not mitigated would result in additional cash flows. Therefore, since the mine is legal without mitigation, there are no benefits to performing a "no mitigation" analysis. c. Should this project be undertaken? If so, should the firm do the mitigation? analysis. analysis. analysis. analysis. analysis