3. Net Present Value, Internal Rate of Return and Statistics. a) You buy a mining site, including exploration rights and there are set up costs of 285m (million). You expect to extract the following value of gold over the next 6 years, net of running costs: 40m, 73.5m, 123.5m, 90.5m, 54.5m and 21m. At the end of year 6 you pay 30m clean-up costs. The site will then be handed back to authorities (as worthless). By calculating the NPV (or otherwise) determine whether one should you go ahead with the project? The cash flows are discounted at 6.8% p.a. [15 marks]