A. Which investment should be made?

B. If the Yukon mine justifies an extra 5 percent premium over the normal cost of capital because of its riskiest and relative uncertainty of flows, does the investment decision change?

I need step by step explanation plus answers.

Silverado Mining Company is analyzing the purchase of two silver mines, Only one investment will be made. The Yukon mine will cost $2 million, which will produce $400,000 per year in Years 5 through 15 and $800,000 per year in Years 16 through 25 . The Labrador mine will cost$2.4 miltion and will produce $300,000 per year for the next 25 years. The cost of capital is 10 percent. a. Which investment should be made? b. If the Yukon mine justifies an extra 5 percent premium over the normal cost of capital because of its riskiness and relative uncertainty of flows, does the investment decision change