Mr. Taha is the owner of a reputable mining company in Balochistan. An expert geologist has presented his report in a meeting. The key points of the report are:

the min is expected to be productive for 8 years after which it would be exhausted if Mr. Taha goes ahead with the project and opens the mine, it would cost PKR 600 million today Moreoever if he wants to reduce the pollution, he would have to spend 200 million extra today These are the following expected cash flows of the project The mining company has 12% required return on all of its gole mines. 1 75,000,000 2 120,000,000 3 160,000,000 4 210,000,000 5 240,000,000 6 160,000,000 7 130,000,000 8 90,000,000 a) Calculate the NPV, Payback, discounted payback, and IRR of the project (5 marks)

b) Based on your calculations, should the project be accepted? (3 marks)

c) Should it go for the pollution reduction? (2 marks)