An electric utility is considering a new power plant in northernArizona. 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 $40 million at Year 0 tomitigate the environmental problem, but it would not be required todo so. The plant without mitigation would cost $240.62 million, andthe expected cash inflows would be $80 million per year for 5years. If the firm does invest in mitigation, the annual inflowswould be $84.19 million. Unemployment in the area where the plantwould be built is high, and the plant would provide about 350 goodjobs. The risk-adjusted WACC is 16%.

Calculate the NPV and IRR with mitigation. Enter your answer forNPV in millions. For example, an answer of $10,550,000 should beentered as 10.55. Negative values, if any, should be indicated by aminus sign. Do not round intermediate calculations. Round youranswers to two decimal places.

NPV: $ million

IRR: %

Calculate the NPV and IRR without mitigation. Enter your answerfor NPV in millions. For example, an answer of $10,550,000 shouldbe entered as 10.55. Negative values, if any, should be indicatedby a minus sign. Do not round intermediate calculations. Round youranswers to two decimal places.

NPV: $ million

IRR: %