Amining company is considering a new project. because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. 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 expected net cash inflows would be $20 million per year for 5 years. if the firm does invest in mitigation, the annual inflows would be $21 million. the risk-adjusted wacc is 12%.a) calculate the npv and irr with and without mitigation. b) how should the environmental effects be dealt with when this project is evaluated? c) should this project be undertaken? if so, should the firm do the mitigation?

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.