BHP is considering buying in a new nickel mine which is forecasted to start earning $30,000,000 of revenue in the 3rd year of operation. Production of nickel is expected to increase by 10% p.a. after, having a consequent impact on revenue. Operating costs are 25% of annual revenue. The mine is kept for 5 years of production, after which the nickel is exhausted and is expected to fetch a sale price of only $5,000,000 in the final year of production.

Setting up the mine requires $40mil today and $20mil in the first year. 70% of capital is financed through debt which has a cost of 8% and shareholders require a 6% premium on what creditors earn.

Calculate the NPV and IRR of this project.