Jordan Miller, the owner of Miller Gold Mining, is evaluating a new gold mine in Nevada. Paul Harris, the company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for nine years, after which the gold would be completely mines. Paul has taken an estimate of the gold deposits to Lauren Parker, the company's financial officer. Lauren has been asked by Jordan to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Lauren has used the estimates provided by Paul 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. Miller Gold Mining has a 12 percent required return on all of its gold mines. 1. For the proposed mine, calculate: a. Payback period b. Modified internal rate of return (MIRR) using the combination approach. Explain why MIRR is used to evaluate this project instead of IRR. c. Net present value (NPV) 2. Based on your analysis, should the company open the mine? Explain