equipment after three years is expected to be $4,000. Which option would you recommend? How much better is that option in today's dollars? 6. A new diamond deposit has bedn found in northern Alberta. Your researchers have determined that it will cost $25 millionto purchase the land and prepare it for mining. A the beginning of both the second and third years, another $1 million investment will be required to establish the mining operations. Starting at the end of the second year, the deposit is expected to earn net profits of $3 million, which will be sustained for three years before the deposit is depleted. If the cost of capital is 16%, should your company pursue this venture? Provide calculations to support your decision