Question 9 (1 point) An electric utility is considering a new power plant in northern Arizona. Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit, the plant would be legal; but it would cause some air pollution. The company could spend an additional $23 million at Year 0 to mitigate the environmental problem, but it would not be required to do so. The plant without mitigation would cost $203 million, and the expected cash inflows would be $53 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $73 million. Unemployment in the area where the plant would be built is high, and the plant would provide about 350 good jobs. The risk-adjusted WACC is 10%. a) Calculate the IRR without mitigation. b) Calculate the IRR with mitigation. a)5.55%; b)23.39% a)10.00%; b)10.00% a) Calculate the IRR without mitigation. b) Calculate the IRR with mitigation. O a)5.55%; b)23.39% O a)10.00%; b)10.00% O a)9.60%; b)18.45% O a)18.45%; b)9.60% O a)23.39%; b)18.45%