Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the

company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be

productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold

deposits to Alma Garrett, the company's fnancial offoer. Alma has been asked by Seth to perform an analysis of the

new mine and present her recommendation on whether the company should open the new mine.

Alma has used the estimates prowided by Dan to determine the revenues that could be expected from the mine. She

also has projected the expense of opening the mine and the annual operating expenses. If the company opens the

mine, it will cost $$950$ million today, and it will have a cash outflow of $$75$ million nine years from today in costs

associated with closing the mine and reclaiming the area surrounding it$.$ The expected cash flows each year from the

mine are shown in the following table. Bullock Mining has a $12$ percent required return on all of its gold mines.

Construct a spreadsheet to calculate the payback period, internal rate of return, modifled internal rate of return,

proftability index, and net present value of the proposed mine.

Based on your analyris, should the company open the mine?