Problem 13-17 (Algo) Deferred cash flows and risk-adjusted discount rate [LO13-1] Highland Mining and Minerals Company is considering the purchase of two gold mines. Only one investment will be made. The Australian gold mine will cost $1,645,000 and will produce $309,000 per year in years 5 through 15 and $515,000 per year in years 16 through 25. The U.S. gold mine will cost $2,054,000 and will produce $252.000 per year for the next 25 years. The cost of capital is 9 percent. Use Appendix D for an approximate answer but calculate your final answers using the formula and financial calculator methods. (Note: In looking up present value factors for this problem, you need to work with the concept of a deferred annuity for the Australian mine. The returns in years 5 through 15 actually represent 11 years; the returns in years 16 through 25 represent 10 years.) a-1. Calculate the net present value for each project. Note: Do not round intermediate calculations and round your answers to 2 decimal places. Net Present Value The Australian mine $ 324,421 43 The U.S. mine a-2. Which investment should be made? O Australian mine OUS. mine