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Gina used the estimates provided by Dory to determine the revenues that could be expectedfrom the mine. She has projected both the annual operating expenses

Gina used the estimates provided by Dory to determine the revenues that could be expectedfrom the mine. She has projected both the annual operating expenses of the new mine and the expense of opening the mine. If the company opens the mine, it will cost $635 million today, and it will have a cash outflow of $45 million nine years from today in costs associated with closing the mine and reclaiming the surrounding area.

The expected cash flows each year each year from the mine are shown below:

Year Cash Flow

-$635,000,000

189,000,000

105,000,000

130,000,000

173,000,000

205,000,000

155,000,000

145,000,000

122,000,000

- 45,000,000

How do I calculate:

payback period,

internal rate of return

modified internal rate of return

and net present value of the proposed mine.

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