Exercise 2: Find NPV at 10 years and IRR of FV at 5th & 10th year Is this Project profitable? Why? Find PV's and FV's for each year. Use the details below for a Mining Project Capital cost in $'000,000 Mining activities - 15 Process Plant - 32 Tailings Storage Facility - 8 Infrastructure - 30 Owner's cost - 5 Indirect Costs - 40 sub-total 130 contingency 13 Exploration Capital Cost $10M lump sum VAT (12%) Total Operating Cost in $'000,000 Mining and Milling - 30 15.6 158.6 Marketing/Distribution - 5 Environment/social - 6 Indirect costs - 5 Power generation and distribution - 5 Sub-total - 51 Contingency -5.1 Value Added Tax - 6.12 Total- 62.22 Project Production 4Million ton/year of ore @ 1.3g/t gold, 85% recovery Life of Mine - 10 years Price: $1700/0z gold, 1 oz = 31g