Question: Hi can i get help with this question? (20 points) Bullock Gold Mining is evaluating a new gold mine in South Dakota. All of the

 Hi can i get help with this question? (20 points) Bullock

Hi can i get help with this question?

Gold Mining is evaluating a new gold mine in South Dakota. All

(20 points) Bullock Gold Mining is evaluating a new gold mine in South Dakota. All of the analysis has been done and the CFO has forecast some of the relevant cash ow information. If BGM opens the mine, it will cost $635 million today (Time 0) and it will have a cash outow nine years from today (Time 9) of $45 million in costs related to closing the mine and reclaiming the area around. Of the initial costs, BGM will depreciate $500 million over 8 years using straight line method. Expected earnings before taxes for the eight years of operation W below. BGM has a required rate of return for all of its gold mines of 12%. Earnings before taxes (in 81,0005): 0 1 2 3 4 5 6 7 8 9 37,857.14 60,714.29 96,428.57 157,857.1 203,571.4 132,142.53 117,857.1 85,000.00 Find the relevant cash ows for each of the relevant periods (Time 0 Time 9). Operating cash ows for Time 1-8 should include: Earnings before taxes Taxes [ 30% ; Net Income Depreciation Free Cash ows

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