Bullock Gold Mining is evaluating a new gold mine in South Dakota. All of the analysis has been done and the CFO has forecast some of the relevant cash flow information. If BGM opens the mine, it will cost $635 million today (Time 0) and it will have a cash outflow nine years from today (Time 9) of $45 million in costs related to closing the mine and reclaiming the area around. Of the initial costs, BGM will depreciate $500 million over 8 years using straight line method. Expected earnings before taxes for the eight years of operation are shown below. BGM has a required rate of return for all of its gold mines of 12%.

0	1	2	3	4	5	6	7	8	9
	37,857.14	60,714.29	96,428.57	157,857.1	203,571.4	132,142.9	117,857.1	85,000.00

a. Find the relevant cash flows for each of the relevant periods (Time 0 Time 9). Operating cash flows for Time 1-8 should include:

_{Earnings before taxes}

_{Taxes (30%)}

_{Net Income}

_Depreciation

_{Free Cashflow}

b. Calculate the NPV, IRR, and Payback Period for the cash flows and indicate whether BGM should pursue the mining project or not.