eBook A mining company is deciding whether to open a strip mine, which costs $2 million. Cash inflows of $13.5 million would occur at the end of Year 1. The land must be returned to its natural state at a cost of $12.5 million, payable at the end of Year 2. a. Select the project's NPV profile. B .......... NPV (Millions of Dollars 3 2.5 2 1.5 1 0.5 0 0.5 NPV (Millions of Dollars 3 2.5 2 1.5 Icou_nuw to o 100 200 300 400 100 200 300 400 500 WACCA 500 WACCIO W NPV Millions of Dollars 3 25 NPV Nilions of Dollars 3 2.5 1.5 0.5 1.5 1 0.5 0 0.5 0.5 1200 do 140 500 400 100 200 100 300 500 400 10:32 AM 0.5 0.5 100 200 300 400 500 WATC1%) 100 200 300 400 500 WACC%) The correct sketch is-Select- v 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- v A Grade it Now Save & Continue 10:32 AM 7/2/2021