A mine would require an investment of $$5$ million at the beginning of the first year and a further investment of $$5$ million at the end of the first year. Mining operations are expected to yield annual year$-$end profits of $$1$ million starting in Year $2.$ The ore body will sustain $10$ years of mining operations. At the end of the last year of operations, the mining company would also have to spend $$1$ million on environmental restoration. Would the project provide the mining company with a rate of return exceeding its $10\%$ cost of capital?

A business is evaluating two mutually exclusive projects. Project A requires