Atter discovering a new gold vein in the Coiorado mountains, CTC Mining Corporation must decide whether to go ahead and develop the deposit. The most cost-effective method of mining goid is sulfuric acid extraction, a process that could result in environmental damage. Before proceeding with the extraction, cTC must spend 5900,000 for new mining equipment and pay $165,000 for its installation. The mined gold will net the firm an estimated $350,000 each year for the 5 -year life of the vein. CTC's cost of capital is 22%. For the purposes of this problem, assume that the cash infiows occur at the end of the year: a. What is the oroject's NPV? Do not round intermediate calculations, Round your answer to the nearest dollar, Use a minus sign to enter negative yalue, if any $ What is the project's 1AR? Do nat round intermediate calculatiens. Round your answer to two decimal places. b. Should this project be undertaken if environmental impacts were not a consideration? c Mow should environmental effects be considered when evaluating this, or any other, project? 1. Environmental effects should be treated as sunk costs. 11. Environmental effects could be added by estimating penaities or any other cash outflows that might be imposed on the firm to help return the iand to its previous state (it possible) III. Environmental effects should be ignored since they would have no effect on the project's profitability