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USGOLD Company has an opportunity to invest in a gold mine. The initial investment is $250 million. The mine is estimated to produce 100,000 ounces

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USGOLD Company has an opportunity to invest in a gold mine. The initial investment is $250 million. The mine is estimated to produce 100,000 ounces of gold per year for the next ten years. The extraction cost of gold per ounce is $150 and it is expected to remain at that level. The current price of gold is $600 per ounce and it is expected to increase by 4% per year for the next 10 years. What is the NPV of the project at a discount rate of 10%? (Ignore taxes.) A. $ 3.8 million. B. $240.8 million. C. $257.8 million. D. None of the above

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