Please assist with this questions number 3

3. Eastern Shallow, Ltd., is a gold mining company operating a single mine. The present price of gold is $300 an ounce and it costs the company $250 an ounce to produce the gold. Lastyear. 50,01) ounces were produced and engineers estimate that at this rate of production the mine will be exhausted in seven years. The required rate of return on gold mines is 10%. a. What is the value of the mine? 11 Suppose ination is expected to increase the cost of producing gold by 10% a year but the price of gold does not change because of large sales of stockpiied gold by foreign governments. Furthermore. imagine that the ination raises the required rate of return to 21%. Now, what is the value of the mine? c. Suppose the company may shut, reopen,or abandon the mine in response to uctua- tions in the price of gold. Can the NPV method he used to value the mine under these