A new diamond deposit has been found in northern Alberta. Your researchers have

determined that it will cost $$2\mathrm{.}5$ million to purchase the land and prepare it for mining. At

the beginning of both the second and third years, another $$1$ million investment will be

required to establish the mining operations. Starting at the end of the second year, the

deposit is expected to earn net profits of $$3$ million, which will be sustained for three

years before the deposit is depleted. If the cost of capital is $16\%,$ should your company

pursue this venture? Provide calculations to support your decision