Silverado Mining Company is analyzing the purchase of two silver mines. Only one investment will be made. The Yukon mine will cost $2,850,000 million, which will produce $570,000 per year in Years 5 through 15 and $1,140,000 per year in Years 16 through 25. The Labrador mine will cost $3,420,000 million and will produce $427,500 per year for the next 25 years. The cost of capital is 10 percent. a-1. Calculate the net present value for each project. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter your answers in whole dollars, not in millions.) Yukon Mine Labrador Mine a-2. Which investment should be made, if projects are mutually exclusive? O Yukon O Labrador Net present value $ $ b-1. If the Yukon mine justifies an extra 5 percent premium over the normal cost of capital because of its riskiness and relative uncertainty of flows, recalculate the net present value of the mine. (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter your answers in whole dollars, not in millions.) Yukon mine Yes O No Net present value $ b-2. Does the investment decision change?

Silverado Mining Company is analyzing the purchase of two silver mines. Only one investment will be made. The Yukon mine will cost $2,850,000 million, which will produce $570,000 per year in Years 5 through 15 and $1140,000 per year in Years 16 through 25 . The Labrador mine will cost $3,420,000 milion and will produce $427,500 per year for the next 25 years. The cost of capital is 10 percent. a-1. Calculate the net present value for each project. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter your answers in whole dollars, not in millions.) a-2. Which investment should be made, if projects are mutually exclusive? Yukon Labrador b-1. If the Yukon mine justifies an extra 5 percent premium over the normal cost of capital because of its riskiness and relative uncertainty of flows, recalculate the net present value of the mine (Negotive answer should be indicoted by o minus sign. Do not round intermediote calculations. Round the final answers to the neorest whole dollor. Enter your answers in whole dollars, not in militions.) b-2. Does the investment decision change? Yes No