For Step 2: Submit a Microsoft Word document that:

1. Summarizes the problem.
2. Provides your analysis of the work performed in Step 1.
3. Recommends whether the company should open the mine based upon your analysis.

A B Year 0 1 2 B C Cash Flow Cumulative CF $ (625,000,000.00) $(625,000,000.00) $ 70,000,000.00 $(555,000,000.00) $ 129,000,000.00 $(426,000,000.00) $ 183,000,000.00 $(243,000,000.00) $ 235,000,000.00 $ (8,000,000.00) $ 210,000,000.00 $ 202,000,000.00 $ 164,000,000.00 $ 366,000,000.00 $ 108,000,000.00 $ 474,000,000.00 $ 86,000,000.00 $ 560,000,000.00 $ 190,000,000.00) $ 470,000,000.00 4 m+ 0 5 6 7 8 9 Required Returns Payback Period= Internal Rate of Return= Modified Internal Rate of Return= Net Present Value= 12% 4.04 years 15% 13% $ 73,320,458.17