Tangshan Mining Company is considering investing in a new mining project. The firm's cost of

capital is 12 percent and the project is expected to have an initial aftertax

cost of $5,000,000.

Furthermore, the project is expected to provide aftertax

operating cash flows of $2,500,000 in year 1,

$2,300,000 in year 2, $2,200,000 in year 3, and ($1,300,000) in year 4?

(i) (3 pts) Calculate the project's NPV.

(ii) (2 pts) Calculate the project's IRR.

(iii) (3 pts) Should the firm make the investment? Why?