1. Your company is planning to open a gold mine that will cost $3 million to build, with expenses occurring at the end of the year in three years. The mine will provide cash flows after contributions of $2 million at the end of two successive years, then it will cost $0.5 million to close the mine at the end of the third year of operations

	Gold Mine
Year	Cash Flows
0	($3,000,000)
1	2,000,000
2	2,000,000
3	(500,000)

Determine the NPV and IRR of this project.

Answer: What decision would you make if you were suggested to keep the mine operating after the third year?