Question: Question 8 (1 point) A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but

 Question 8 (1 point) A mining company is considering a new

Question 8 (1 point) 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 $25 million at Year 0 to mitigate the environmental problem, but it would not be required to do so. Developing the mine (without mitigation) would cost $95 million, and the expected cash inflows would be $45 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $42 million. The risk-adjusted WACC is 14.00%. a. Calculate the NPV without mitigation. b. Calculate the NPV with mitigation. O a)$34.49m; b)$24.19m a)$59.49m; b)$24.19m a)$49.19m; b)$59.49m a)$24.19m; b)$34.49m

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