Please Answer questions 1 and 2.

CHAPTER CASE BULLOCK GOLD MINING ld be expected from acted the expense of open- expenses. If the 50 million today Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota Dan Dority, the company's geologist has iust 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 com- pany should open the new mine. Alma has used the estimates provided by Dan determine the revenues that could be expect the mine. She has also projected the expensa ing the mine and the annual operating expense company opens the mine, it will cost $650 million and it will have a cash outflow of $72 million nine from today in costs associated with closing the and reclaiming the area surrounding it. The expen The expected cash flows each year from the mine are shown in table on this page. Bullock Mining has a 12 percent quired return on all of its gold mines. Year WN Cash Flow -$650,000,000 80,000,000 121,000,000 162.000.000 221,000,000 210,000,000 154.000.000 108,000,000 86,000,000 -72,000,000 QUESTIONS 1. Construct a spreadsheet to calculate the pay. back period, internal rate of return, modified in- ternal rate of return, and net present value of the proposed mine. 2. Based on your analysis, should the company open the mine? 3. Bonus question: Most spreadsheets do not have a built-in formula to calculate the payback period. Write a VBA script that calculates the payback period for a project