please show work and why

Duld Review View == Paste Calibri (Body) 11 VA A B I Ur Eva. Av fx 2 w Me 20 x D F G H Based on your analysis, should the com Year 0 1 2 3 4 5 6 7 8 9 | CFS -850,000,000 165,000,000 190,000,000 225,000,000 245,000,000 235,000,000 195,000,000 175,000,000 155,000,000 -120,000,000 0 1 12 NPV 16 Decision 17 Explain your decision 19 IRR 20 Decision Explain your decision Payback 24 Decision 25 Explain your decision Discounted Payback Decision 29 Explain your decision 4 ) Case study Template Sheet3 + Ready Calibri (Body) 11 A A uste 8 BI UN Brava = = = Diva EE EEE B C D E If you are unable to read plase look at page 229 of your BOOK BULLOCK GOLD MINING Block, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota Dan Dority. company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would productive for eight years, after which the gold would be completely mined, Dan has taken an estimate of she cold deposits to Alma Garrett, the company's financial officer Alma has been asked by Seth to perform analysis of the new mine and present her recommendation on whether the company should open the new mine. 3 4 Alma has used the estimates provided by Dan to determine the revenues that could be expected from the . 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 ine 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 2 percent required return on all of its gold mines. s 16 17 YEAR CASH FLOW -$850.000.000 165,000,000 190,000,000 225,000,000 245,000,000 235,000.000 195,000,000 175,000,000 155.000.000 - 120,000,000 A. Based on the above, construct a spreadsheet to calculate the Net Present Value, Internal rate of return, the payback period and the disocunted payback period (Assume a cut off of 5 2 years for the payback and disocunted payback period). 37 B. Based on your analysis, should the company open the mine? Case study Template Sheet3 + Ready