After discovering a new gold mine in Taita, Mali Mengi Mining Corporation must decide whether to mine the deposit. The cost-effective method of mining gold is sulphuric acid extraction, a process that results in environmental damage. To go ahead with extraction, Mali Mengi must spend kshs. 900,000 for new mining equipment and pay Kshs. 165,000 for its installation. The gold mined will net an estimated kshs. 350,000 each year for 5-year period. The firms cost of capital is 14%, the corporate tax is 50%. The projects will be depreciated on a reducing balance basis with a salvage value of 30,000. Assume the cash flows occur at the end of the year. Evaluate the profits using NPV, IRR, PI and MIRR. Ignore environmental concerns. In case the concerns are included, how will it affect the firm?