is this correct base on the below case

1. Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.

Payback Period: 4.31 Years

IRR: 13.25%

MIRR: 12.51%

NPV: $28,451,509.51

2. Based on your analysis, should the company open the mine?

According to the analysis using the capital budgeting technique, I can say that the financial position Bullock Gold Mining is good, and they are able to open the South Dakota gold mine as the NPV of the company is positive and lead to better investment decisions, also the MIRR is more than the discounted rate of the cost of capital.Since the Company NPV in this case is 28.45 million, its recommended that investment should be made for the opening of the mine.

3. Bonus question: Most spreadsheets do not have a built-in formula to calculate the payback period. constructa VBA script that calculates the payback period for a project.

Payback (Inflow, Invest)

A = Abs (invest)

I = 1

C= Inflow. Count

DO

A = A - V

V = Inflow. cells(i). Value

If N = V

Payback - T

Exit Function

End If

K = K + 1

Loop Until K > B

Payback = "nil payback"

End Function

Case

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished 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. Dan has taken an estimate of the gold deposits to Alma Garrett, the company's financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine.

Alma 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 $650 million today, and it will have a cash outflow of $72 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table on this page. Bullock Mining has a 12 percent required return on all of its gold mines.

Year Cash Flow

0 $650,000,000

1 80,000,000

2 121,000,000

3 162,000,000

4 221,000,000

5 210,000,000

6 154,000,000

7 108,000,000

8 86,000,000

9 72,000,000