Colorado Mining, Inc. and Tanzania Exploration, Ltd. are separate firms that are both considering a new gold exploration project. Colorado Mining is in the actual gold mining business and has an after-tax cost of capital of 9.8 percent. Tanzania Exploration is in the precious gem retail business and has an after-tax cost of capital of 8.4 percent. The project under consideration has initial costs of $675,000 and anticipated annual cash inflows of $82,000 a year for ten years. Which firm(s), if either, should accept this project?

both Colorado Mining and Tanzania Exploration

neither Colorado Mining nor Tanzania Exploration

Colorado Mining only

Tanzania Exploration only

cannot be determined without further information