New project the firm could spend 10 million at year 0 to mitigate the enviromental problem, would cost60 million and expected cash flows would be 20 million per year for 5 years if investing in mitigation , the annual  flows would be 21 million. Interest is 12% a.Calculate the NPV and IRR without mitigation. b. How should the enviroment effects to evaluate the project c. Should the project be undertaken ? If so , should the firm do mitigation.

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capital Budgeting

New project the firm could spend 10 million at year 0 to mitigate the enviromental problem, would cost60 million and expected cash flows would be 20 million per year for 5 years if investing in mitigation , the annual  flows would be 21 million. Interest is 12%

a.Calculate the NPV and IRR without mitigation.

b. How should the enviroment effects to evaluate the project

c. Should the project be undertaken ? If so , should the firm do mitigation.

 

 

 

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