question 1 and 2.

CHAPTER +a 8 Net Present Value and Other Investment Criteria CHAPTER CASE Bullock Gold Mining eth Bullock, the owner of Bullock Gold Mining, is evai ating a new gold mine in South Dako's. Aima has used the estimates provided by Dan to dan bolty, deternine the revenues that could be expected from Doitdei e company's geologist, has just finishert his aaysis of the mine. She has also projected the expe the the mine site. He has estimated that the mis productive for eight years, after which the gG,NCU oio r.g g the rene nd the annval operating expanses. if the e mparyopens he mine it wiil cost $550 million today lit have a cash outlow of $72 million nine years company's tiancial officer. from today In costs associated with closing the mine and mined. Dan has taken an estimate of ne g ad t wi deposits to Alma Garrett, the Alma has been asked by Seth to pertorma naiysis of reciaiming the area surrounding it. The expected cash the new mine and present her recommencationonlows each year from mine are shown in the table on this page. Bullock Gold Mining has a 12 percent required whether the company should open the new mine return on all of its gold mines. Year 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 0 2 3 4 5 6 7 8 QUESTIONS e a 3. Bonus question: Most spreadsheets do not hav Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the pro- 1. built-in formula to calculate the payback period. Write a VBA script that calculates the payback pe- riod for a project. posed mine. Based on your analysis, should the company open the mine