BHP is the only mining company conducting minerals testing in a region where Zainab Williams is the proprietor of a large ranchl. Zainab is contemplating a potential deal with BHP, which would involve her selling the right to mine a section of her land. Zainab expects that a mining project will cause her a loss of $25m in farm income [in present value), because of the loss of the use of the land. 0n the other hand, the mine would build a road, which would save her $5m in transportation costs [in present value) over the life of the ranch. a) (10 marks) What is Zainab's WTS? If BHP expect to earn $100m in prot from the mine, what would be the negotiated price? Assume equally skilled negotiators please. b) (20 marks) BHP is the only mining company conducting minerals testing in this region. BHP review their minerals testing budget. BHP conclude that if they increase their testing budget, they will identify more potential developments than just the one on Zainab's property, in fact, even more than they have the capacity for. If they increase their testing budget substantially, they expect to nd roughly 3 properties (owned by two other people), with roughly the following types of values: _ Willingness-to-sell Expected earnings of the mine Pro-e 1 Zainab's BEES -__ -__ If BHP has the capacity to develop at most 2 mines (because of their limited resources in people and equipment), what would the outcome of negotiations with these property owners be? What is the range of possible prices for each property that would be sold