Question: Please answer all parts and by hand without excel using formulas and showing all calculations! You are considering constructing a new plant in a remote

Please answer all parts and by hand without excel using formulas and showing all calculations!  Please answer all parts and by hand without excel using formulas

You are considering constructing a new plant in a remote wilderness area to process the ore from a planned mining operation. You anticipate that the plant will take a year to build and cost $100 million upfront Once built, it will generate cash flows of $15 million at the end of every year over the life of the plant. The plant will be useless 20 years after its completion once the mine runs out of ore. At that point you expect to pay $200 million to shut the plant down and restore the area to its pristine state. Using a cost of capital of 12%, a. What is the NPV of the project? b. Is using the IRR rule reliable for this project? Explain. c. What are the IRR's of this project? d. What is the purpose of using MIRR (modified internal rate of return)

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