Question: Strip Mining Inc, can develop a new mine at an initial cost of $13 million. The mine will provide a cash flow of 540 million

Strip Mining Inc, can develop a new mine at an initial cost of $13 million. The mine will provide a cash flow of

Strip Mining Inc, can develop a new mine at an initial cost of $13 million. The mine will provide a cash flow of 540 million in 1 year. The land then must be reclaimed at a cost of $30 million in the second year a. What are the IRRs of this project? (Enter your answers in ascending order. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) IRR 1 IRR2 % b. Should the firm develop the mine if the discount rate is 25%? 35% 60% 100%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) Discount Rate NPV Develop? 25% 35% million million million million 60% 10096

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