NPV and IRR Analysis After discovering a new gold vein in the Colorado mountains, CTC Mining Corporation must decide whether to go ahead and develop the deposit. The most cost-effective method of mining gold is sulfuric acid extraction, a process that could result in environmental damage. Before proceeding with the extraction, CTC must spend $900,000 for new mining equipment and pay $165,000 for its installation. The mined gold will net the firm an estinated $350,000 each year for the 5 -year life of the vein. CTC's cost of copital is 14%. For the purposes of this problem, assume that the cash inflows occur at the end of the year. a. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest dollar, Use a mincas sign to enter negative value. if anv. 5 What is the project's IRRR? Da not round intermediate calculotions. Round your answer to two decimal places. b. Should this project be undertaken if emironmental impacts were not a consideration? c. How should environmental effects be considered when evaluating this, or any other, project? 1. Environmental effects thould be treated as sunk costs. II. Envitonmental effects could be added by estimoting penalties or any other cash outfiows that might be imposed on the firm to helo refurn the land to its previous stote (if possible). iII. Environtrental effects should be lonored thice they would have no effect on the project's profitability