A mining company is deciding whether to open a strip mine, which costs $2 million. Cash...

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A mining company is deciding whether to open a strip mine, whichcosts $2 million. Cash inflows of $14 million would occur at theend of Year 1. The land must be returned to its natural state at acost of $11 million, payable at the end of Year 2.
Should the project be accepted if WACC = 10%?
-Select-Yes No

Should the project be accepted if WACC = 20%?
-Select-YesNoItem 3

Think of some other capital budgeting situations in whichnegative cash flows during or at the end of the project's lifemight lead to multiple IRRs. The input in the box below will not begraded, but may be reviewed and considered by yourinstructor.

What is the project's MIRR at WACC = 10%? Round your answer totwo decimal places. Do not round your intermediatecalculations.
%

d. What is the project's MIRR at WACC = 20%? Round your answer totwo decimal places. Do not round your intermediatecalculations.
%

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NPV at 10164NPV at 20203Situations when there will See Answer

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A mining company is deciding whether to open a strip mine, whichcosts $2 million. Cash inflows of $14 million would occur at theend of Year 1. The land must be returned to its natural state at acost of $11 million, payable at the end of Year 2.Should the project be accepted if WACC = 10%?-Select-Yes NoShould the project be accepted if WACC = 20%?-Select-YesNoItem 3Think of some other capital budgeting situations in whichnegative cash flows during or at the end of the project's lifemight lead to multiple IRRs. The input in the box below will not begraded, but may be reviewed and considered by yourinstructor.What is the project's MIRR at WACC = 10%? Round your answer totwo decimal places. Do not round your intermediatecalculations.%d. What is the project's MIRR at WACC = 20%? Round your answer totwo decimal places. Do not round your intermediatecalculations.%