Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $750 million today, and it will have a cash outflow of $105 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table that follows. Bullock has a 12 percent required return on all of its gold mines.

Year cash flow Year 0: -$750,000,000; Year 1: 150,000,000; Year 2: 180,000,000; Year 3:195,000,000; Year 4: 235,000,000; Year 5: 220,000,000; Year 6: 1850,000,000; Year 7: 165,000,000; Year 8:145,000,000; Year 9: -105,000,000.

Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.

Based on your analysis, should the company open the mine?