Suppose the interest rate is r per annum and interest is paid annually. A coal mining company is considering digging a mine in South Yorkshire. The start-up costs would be 100 million (payable now), and the revenue would be 125 million at the end of the first year. Thereafter, the local authorities have decreed that the mine must be turned into a golf course, which the mining company must sponsor: the mining company must pay 1 million per year forever (the payments of 1 million are made at the end of every year, starting at the end of the second year). (a) [8 marks] Write down the Net Present Value (NPV) of this investment project in terms of the interest rate r. Hint: express the NPV in millions, i.e. write 100 instead of 100,000,000! (b) (5 marks] If the interest rate is r = 3%, would you advise the mining com- pany to undertake this project? (c) [7 marks] For what range of values of r should the mining company undertake the project (you only need to consider 0