You own a coal mining company and are considering opening a new mine. The mine itself will cost $119.2 million to open.

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You own a coal mining company and are considering opening a new
mine. The mine itself will cost
$119.2
million to open. If this money is spent​ immediately, the
mine will generate
$19.7
million for the next 10 years. After​ that, the coal will
run out and the site must be cleaned and maintained at
environmental standards. The cleaning and maintenance are expected
to cost
$1.5
million per year in perpetuity. What does the IRR rule say about
whether you should accept this​ opportunity? If the cost of
capital is
7.8%​,
what does the NPV rule​ say?
Question content area bottom
Part 1
What does the IRR rule say about whether you should accept
this​ opportunity?  ​(Select the best choice​ below.)
A.There are two
IRR​s,
so you cannot use the IRR as a criterion for accepting the
opportunity.This is the correct answer.
B.The IRR is
r=9.05%​,
so accept the opportunity.
C.
Accept the opportunity because the IRR is greater than the cost
of capital.
Your answer is not correct.
D.Reject the opportunity because the IRR is lower than the
7.8%
cost of capital.
Part 2
The NPV using the cost of capital of
7.8%
is
​$enter your response here
million