You own a coal mining company and are considering opening a newmine. The mine itself will cost $ 118.1 million to open. If thismoney is spent​ immediately, the mine will generate $ 21.3 millionfor the next 10 years. After​ that, the coal will run out and thesite must be cleaned and maintained at environmental standards. Thecleaning and maintenance are expected to cost $ 1.7 million peryear in perpetuity. What does the IRR rule say about whether youshould accept this​ opportunity? If the cost of capital is 8.3 %​,what does the NPV rule​ say?
