A mining company is considering a new projectthe firm could

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A mining company is considering a new project.The firm could spend an additional $10 million at Year 0 to mitigate the environmental problem, but it would not be required to do so.Developing the mine without mitigation would cost $60 million, and the expected net cash inflows would be $20 million per year for 5 years. If the company does invest in mitigation, the annual inflows would be $21 million.The risk adjusted WACC is 15%.

Calculate the NPV with Mitigation.

Reference no: EM13380594

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