FINA 626 Managerial Finance Case Study if 1 Trump Sanders, the owner of Clinton Mining, is evaluating a new platinum mine in Alaska. Marco Cruz, the company's geologist, has just nished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Marco has taken an estimate of the platinum deposits to Hillary Bush, the company's financial officer. Hillary has been asked by Trump to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Hillary has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $750 million today, and it will have a cash outflow of $75 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows from each year from the mine are shown in the following table. Clinton Mining has a 12 percent required return on all its gold mines. Cashflow ($750,000,000) $130,000,000 $180,000,000 $190,000,000 $245,000,000 $205,000,000 $155,000,000 $135,000,000 $95,000,000 ($75,000,000)