Rio Tinto is considering buying in a new rare earth mine which is forecasted to start earning $3,330,000 of revenue in the 3rd year of operation (3yrs from today). Production of rare earth is expected to increase by 20%p.a. after, having a consequent impact on revenue. Operating costs are 30% of annual revenue. The mine is kept for 4 years of production, after which the rare earth is exhausted and is expected to fetch a sale price of only $500,000. Setting up the mine requires $4mil today and $2mil in the first year. 60% of Rio's capital is financed through debt which has a cost of 7% and shareholders require a 5% premium on what creditors earn. Does the new iron ore mine add to shareholders wealth? The NPV of the mine is and the IRR is