Question: please answer every part. show work thank yo You are considering constructing a new plant in a remote wilderness area to process the ore from

please answer every part. show work thank yo please answer every part. show work thank yo You are considering constructing

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 $104 million upfront. Once built, it will generate cash flows of $17 million per year starting two years from today. In 21 years, after its 20 th year of operation, the mine will run out of ore and you expect to pay $236 million to shut the plant down and restore the area to its pristine state. Using a cost of capital of 13% : a. What is the NPV of the project? b. Is using the IRR rule reliable for this project? Explain. c. What are the IRRs of this project? a. What is the NPV of the project? The NPV of the project is $ million. (Round to one decimal place.) b. Is using the IRR rule reliable for this project? Explain. (Select the best choice below.) A. Yes, the IRR rule is reliable, because the project has a negative net present value. B. No, the IRR ruip is not reliable, because the project has a negative cash flow that comes after the positive ones. C. No, the IRR rule is not reliable, because the project has a negative net present value. D. Yes, the IRR rule is reliable, because the project has a negative cash flow that comes after the positive ones. c. What are the IRRs of this project? The IRRs of this project in ASCENDING order are % and %. (Round to two decimal places.)

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