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A coal mining company expects to receive $ 6 4 , 6 0 5 , 9 6 6 per year for the sale of its

A coal mining company expects to receive $64,605,966 per year for the sale of its clean coal product. Opening the mine and processing facility will require $151,663,602 in capital expense. Operating and maintenance costs are expected to require expenditures totaling $6,984,560 per year. The useful life of the mine is expected to be 10 years, and the corporate discount rate is 4%. The mine and processing equipment have no salvage value. The composite tax rate is 40%. In addition to the economic information, the total deposit includes 6.4 million tons of coal which will be mined at 800,000 tons per year. The mineral rights for this deposit originally cost $8.30 million. The depletion rate is 10%. What is the NPV of this project considering tax consequences with depreciation and depletion? Assume that the full capital cost can be depreciated over 10 years using the straight line method.
Note: the year 0 costs should include both the $151,663,602 capital expense AND the $8.30 million mineral rights costs.

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