(Answered) Fiorentina corporation a mining and extraction company is

Finance

Fiorentina Corporation, a mining and extraction company, is considering to open a new copper mine operation. The mine itself cost $120 million to start today and will generate $20 million net cash flow per year for the next 10 years. After that, the copper mine will be completely depleted but must be cleaned and maintained according to the environmental protection guidelines. The cleaning and maintenance are expected to cost $2 million per year forever. If the cost of capital is 8%, what do the NPV and IRR decision rules suggest?

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