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question 1:Calulate the Payback with and without mitigation question 2:Should the project be undertaken? If so, should the firm do mitigation? (hint: discuss all the criterias you have calculated in earlier parts)

q1: A construction company is deciding to undertake a project. The project is quite profitable as it will generate net cash inflows of $20 million per year for 5 years. However, it will cause pollution to the nearby residents. The company can mitigate this pollution by investing additional 10 million at Year 0 but legally it is not compulsory for it to do so. Undertaking this project would cost $60 million without mitigation. If the firm does invest in mitigation, the annual cash inflows would be $22 million. The risk adjusted WACC is 12%. Calculate the NPV with and without mitigation. Show the workings q2: Calculate the IRR with and without mitigation. q3: Calulate the Payback with and without mitgation q4: what is the discounted payback with and without mitigation? q5: Should the project be undertaken? If so, should the firm do mitigation? (hint: discuss all the criterias you have calculated in earlier parts) q6:How should the environmental effects be dealt with when this project is evaluated