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 $210.64 million, andthe expected cash inflows would be $70 million per year for 5years. If the firm does invest in mitigation, the annual inflowswould be $75.80 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 19%.

1. Calculate the NPV and IRR with mitigation. Round your answers totwo decimal places. Enter your answer for NPV in millions. Do notround your intermediate calculations. For example, an answer of$10,550,000 should be entered as 10.55. Negative value should beindicated by a minus sign.
   NPV $   million
   IRR %

   Calculate the NPV and IRR without mitigation. Round your answersto two decimal places. Enter your answer for NPV in millions. Donot round your intermediate calculations. For example, an answer of$10,550,000 should be entered as 10.55.
   NPV $   million
   IRR %