SethBullock, the owner ofBullockGold 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 nine years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Garrett, the company's financial officer. 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.

0 - $700,000,000

1 70,000,000

2 137,000,000

3 183,000,000

4 -25,000,000

5 310,000,000

6 164,000,000

7 208,000,000

8 86,000,000

9 32,000,000

10 -97,000,000

Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She alsohasprojected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $700 million today, and it will have a cash outflow of $97 million ten 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 nearby table.BullockGold Mining has a 13 percent required return on all of its gold mines.

Need to calculate:

NPV

Payback Periods

IRR

MIRR using a 13% finance rate and 13% reinvesting rate