A. Based on the above, construct a spreadsheet to calculate the Net Present Value, modified internal rate of return (MIRR), the payback period and the disocunted 36 payback period (Assume a cut off of 5 years for the payback and disocunted payback period).

B. Based on your analysis, should the company open the mine?

BULLOCK GOLD MINING seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Garrett, the company's financial officer. Alma has been asked by Seth to perform on analysis of the new mine and present her recommendation on whether the company should open the Alma has used the estimates provided by Dab to determine the revenues that could be expected from the new mine. mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $850 million today, and it will have a cash outflow of $120 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table that follows. Bullock has a merrent required return on all of its gold mines. Bared on your analphi, should the company open the nine? is