PLEASE HELP WITH ALL QUESTIONS, if possible.

Integrative: Complete investment decision

With the market price of gold at C$1,562.50 per ounce (C$ stands for Canadian dollars), Maritime Resources Corp., a Canadian mining firm, would like to assess the financial feasibility of reopening an old gold mine that had ceased operations in the past due to low gold prices. Reopening the mine would require an up-front capital expenditure of C$68.1million and annual operating expenses of C$19.41million. Maritime expects that over a 5-year operating life it can recover 173,000 ounces of gold from the mine and that the project will have no terminal value. Maritime uses straight-line depreciation, has a 21.01% corporate tax rate, and has a(n)10.9% cost of capital.

a. Calculate the operating cash flows for the gold mine project.

(Problem A, would be answered like this, so please show all answers)

Revenue: ___?

Operating Expenses:___?

EBIT:___?

Depreciation___?

NPBT:_____?

Taxes:___?

NPAT:___? OCF:____?

b. Depict on a timeline the net cash flows for the gold mine project.

(This, you would need to be looking at time lines, not as important to answer)

c. Calculate the internal rate of return (IRR) for the gold mine project.

___?___%

d. Calculate the net present value (NPV) for the gold mine project.

$____?___

e. Make a recommendation to accept or reject the gold mine project, and justify your answer.

(I might have to answer this myself as well, since I can't predict the new questions, until I answer A,B,&C but this is am example of what to expect for E

Example

1)Accept the project because the NPV (negative $ 67 comma 700 comma 000$67,700,000) is negative and the IRR(34.0334.03%)is greater than the cost of capital(11.311.3%).

2)Accept the project because the NPV($42 comma 227 comma 253.2442,227,253.24)is positive and the IRR(11.311.3%)is greater than the cost of capital(34.0334.03%).

3)Accept the project because the NPV(negative $ 67 comma 700 comma 000$67,700,000)is negative and the IRR(11.311.3%)is greater than the cost of capital(34.0334.03%).

4).Accept the project because the NPV($42 comma 227 comma 253.2442,227,253.24)is positive and the IRR

(34.0334.03%)is greater than the cost of capital(11.311.3%).