FINANCE 301 20w FALL 2018 Witing Assignment 84(1)(Compatibility Mode]- Microsoft Word Subttle Subtle Em... Emphasis Styles Paragraph You are a Vice President at the investment bank Goldman Sachs. You just had a two-hour in-person meeting with Roger Moore, CEO and principal shareholder of Moore Metals, which is considering the purchase of Viking Platinum Mine in Greenland Moore Metals' chief geologist has determined that the Viking Platinum Mine has seven years of ore remaining. Moore's chief financial officer has developed the following schedule of pro-formanet incremental net cash flows from the mine. Each of the following cash flows would be received at the end of the year. Sch Year Amount S(295,000,000) 33,000.000 65,000,000 98.000,000 120,000.000 100,000.000 80,000.000 95.000,000 The current owners of the mine are asking $295.000.000 cash, payable at closing. Roger thinks that this is a great deal. He calculates that, for a S295 million investment, he would receive a total of S591 million over only seven years, or a 200.3% return on his investment (S 591 .000.000 / S 29 5.000.000). Roger has been told by his CFO that the proper way to approach any capital budgeting decision is via the payback method, and that any project with a payback offour years or less should be undertaken. Roger suspects that there may be other ways to evaltuate this project. and he has come to you for advice. You and Roger agree that Goldman Sachs will evaluate the project for a fee of$100.000. UD