Problem 13-17 (Algo) Deferred cash flows and risk-adjustod discount rate [LO13-1] Highland Mining and Minerak Company is considering the purchase of two goid mines Only one invesimert wit be made The Australus pold mine will cost 51,600,000 and will oroduce $300,000 per year in years 5 through 15 and $500,000 per year in ycars 16 theough 25. The US goid mene wa cost $2,000,000 and will ptoduce $250,000 per year for the next 25 years. The cobt of capital is 10 percent Use Acioend 0 for an approximate answer bit calculate your final answers using the formula and financial calcilator methods. Dote. in looking up present value factors for this problem you need to wosk with the concept of a deferred annuty for the a-1. Calculate the net present value for eoch project. Note: Do not round intermediate colculations and round your answers to 2 decimel ploces. 3.2. Which inestrnert ihould be made? Aursalian mne. us mine b-1. Assume the Austratan mine justfies ar extra 5 percent premum over the nomal cost of capital becouse of its riskiness and relatove uncertainty of cash flows. Cokvlate the new nef present value given this aspumption Note: Negotive omeunt should be indicated by a minus blon. Do not round intermediate colculetions end tound your answer to 2 decinal places. b-1. Assume the Australian mine justifies an extro 5 percent premium over the normal cost of capital because of its riskiness and relative uncertainty of cash flows. Caiculate the new net present value given this assumption. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. b-2. Does the new assumption change the investment decision