number ii (2) only

Question 1: (a) A mining company is planning a new project that will run from 2021 to 2031. The project will incur capital costs of $150 Million dollars in 2021. From 2021 to 2025 it will produce 3,000 tonnes of copper at a cost of $3 million dollars in operating expenses per year. From 2026 to 2030 annual production increases to 4,500 tonnes of copper but will cost $3.5 million dollars in operating expenses per year. No copper will be produced in 2031, but closure costs are estimated at $100 Million dollars. Assume that: The copper price is $9000 per tonne The company's discount rate is 12% (starting in 2022). Taxes and inflation can be ignored. i. Calculate the Net Present Value using the accompanying spreadsheet ii. Verify the calculations using the formulas below (note that you may need to account for the delayed start in the annuity calculation). PV = FVn (1 + i)n PV = A - [ 1 (1 + i)m '