Find the net present value $($NPV$)$ of a mining project with the following cash flows:

$-$$$4,500$ at time zero $($t$=0).$ This is the initial cost to prepare and build the mine and facilities. This cost is all paid upfront, though the builders will take $2$ years to finish construction.

$$500$ paid annually $60$ times, where the first payment is made $3$ years from now. So there are $60$ annual payments from t$=3$ to t$=62$ inclusive. These are the positive cash flows from running the mine once it's built.

$-$$$1,000$ at t$=62.$ This is the clean$-$up cost of burying the mine and replanting native vegetation at the end of the project. This cost is paid at the same time as the last positive cash flow is received from running the mine.

The required return is $13\%$ pa$.$ All dollar figures above and below are in millions. The NPV of this project is:

Question $10$ Select one:

a$.$

$-$$$1,656\mathrm{.}36$

b$.$

$-$$$1,490\mathrm{.}52$

c$.$

$-$$$1,490\mathrm{.}38$

d$.$

$-$$$656\mathrm{.}81$

e$.$

$$24,500$