Your firm is considering an investment in a Wyoming mining venture. The mineral deposit in Wyoming is estimated to contain 1,000,000 tons of a mineral whose percentage depletion allowance is 22%. It will require an initial investment of $40,000,000 to recover the ore, and the market price for the ore is $175 per ton. Your firm's after-tax MARR is 12% per year, and your effective income tax rate is 40%. It is anticipated that the ore will be sold at the rate of 100,000 tons per year and that operating expenses, exclusive of depletion deductions, will be approximately $9,000,000 per year. Your company will determine its depletion deduction using either the percentage depletion method or the cost depletion method, whichever is more favorable. One depletion method will be used for the life of the venture (i.e., the methodology will not change during the course of the venture). Determine the PW of the after-tax cash flow for this mining project. Is it a worthwhile undertaking? Your firm is considering an investment in a Wyoming mining venture. The mineral deposit in Wyoming is estimated to contain 1,000,000 tons of a mineral whose percentage depletion allowance is 22%. It will require an initial investment of $40,000,000 to recover the ore, and the market price for the ore is $175 per ton. Your firm's after-tax MARR is 12% per year, and your effective income tax rate is 40%. It is anticipated that the ore will be sold at the rate of 100,000 tons per year and that operating expenses, exclusive of depletion deductions, will be approximately $9,000,000 per year. Your company will determine its depletion deduction using either the percentage depletion method or the cost depletion method, whichever is more favorable. One depletion method will be used for the life of the venture (i.e., the methodology will not change during the course of the venture). Determine the PW of the after-tax cash flow for this mining project. Is it a worthwhile undertaking