An investor has requested that you evaluate the economic potential of purchasing lease acreage adjacent to an existing mining operation (at time zero) for a $5,000,000 mineral rights acquisition cost. Mine development will be contracted out with those costs estimated to be $15,000,000 at time zero with an additional $5,000,000 charged at the end of year one for pre-production stripping. Mining equipment costs will total $25,000,000 and charged at time zero along with $2,500,000 for working capital which includes spare parts, the difference in account payables and receivables, and buildup of in-process product inventory. Production is projected to start in year one with mining of 350,000 tones of ore. Production in years 2, 3, and 4 is projected to be uniform at 450,000 tons per year. It is assumed that reserves will be depleted by the end of year 4. Average grade is 0.1 ounces of gold per ton of ore with metallurgical recovery estimated to be 93%. The price of gold is estimated to be $1,200 per ounce in year one with that amount escalating 5% in year 2 and held constant thereafter for evaluation purposes. Royalties are estimated at 3% of gross revenue. Operating costs include all state and local severances and property taxes and are estimated to be $470 per ounce of product that is produced and sold in year one with this amount expected to escalate 8.0% per year in years 2, 3, and 4. Reclaim costs are estimated at $15,000,000 and will be incurred at the end of year 4. Salvage or residual value of mining equipment and inventory or spare parts (working capital) is placed at $12,000,000 and would also be realized at the end of year 4. Calculate the project operating profit and before-tax cash flow (BTCF). For a before-tax minimum rate of return of 15% per year, determine the project net present value.

please show all steps. please show formulas used. cash flow and any comments would be nice.. thank you