Question: Greetings, Kindly answer the WRONG ANSWER IN RED, and please make sure it is correct so I would definitely give you a BIG LIKE. Thank

Greetings,

Kindly answer the WRONG ANSWER IN RED, and please make sure it is correct so I would definitely give you a BIG LIKE. Thank you

Greetings, Kindly answer the WRONG ANSWER IN RED, and please make sure

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an additional $10 million at Year 0 to mitigate the environmental problem, but it would not be required to do so. Developing the mine (without mitigation) would require an initial outlay of $60 million, and the expected cash inflows would be $20 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $21 million. The risk-adjusted WACC is 11%. a. Calculate the NPV and IRR with mitigation. Enter your answer for NPV in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. NPV: $ million IRR: 15.24 % Calculate the NPV and IRR without mitigation. Enter your answer for NPV in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. NPV: $ 13 million IRR: 19.86 %

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