The Black Mountain Mining Company has just purchased the mining rights for a gold mine for $150 million. The proven reserves are 180,000 ounces that BMMC estimates that it can produce in three equal installments over the coming three-year period. The current price of gold is $1,240 per ounce and BMMC expects the price to increase by 6.4% per year for three years. It estimates the total cost of producing the gold at $280 per ounce in year one and expects that to grow by 3.6% per year for the following two years. The required rate of return on the mine is 20% per year. Assume no taxes.

a. BMMC uses its estimates for production, price, and cost and calculates the NPV of the project. How much is that NPV?