1. After discovering a new gold vein in the Colorado mountains, CTC Mining Corporation must decide whether to go ahead and develop the deposit. The most cost-effective method of mining gold is sulfuric acid extraction, a process that could result in environmental damage. Before proceeding with the extraction, CTC must spend $9,000,000 for mining equipment and pay $1,650,000 for its installation. The gold mined will net the company an estimated $3,500,000 each year for the five-year life of the vein, based on the current price of gold. CTCs cost of capital is 14%. For the purposes of this problem, assume that the cash inflows occur at the end of each year. (a) What are the projects NPV and IRR? (b) What are some of the ways that the environmental concerns could be addressed when evaluating this project?