Your mining company is considering an expansion of operations into iron ore. Your engineers surveyed a particular piece of land three weeks ago (the survey cost $25,000 ) and concluded the following: - You can extract 1,000 tons of iron ore per year. - There are 4,000 tons of iron ore underneath this land. Once all the ore has been extracted, the project will cease to produce any revenues. - The price of ore will remain constant for the next 4 years. Currently ore sells for $100 per ton. - The operating cost to extract the ore will be $$0 per ton for the next 4 years. - We will need to invest in the equipment for this project right now for $100,000. - The equipment will be depreciated over a period of four years using the straight-line method, with an assumed salvage value of zero for tax purposes. - At the end of year 4, we can sell the equipment involved in the project for $20,000. - The expansion requires additional working capital (NWC) of $10,000 from the start (at time t=0 ) until the end of year 4 . At time t=4, working capital decreases to $0. - The tax rate is assumed to be 40%. Your cost of capital is 12%. Please provide the Free Cash Flow for each year of this project ( t=0 through t=4) and compute the project's NPV. There is a template provided with the Final Exam Attachment in Blackboard. (please round all answers to the nearest dollar) T=0 Cash Flow: $ T=1 Cash Flow: $ T=2 Cash Flow: $ T=3 Cash Flow: $ T=4 Cash Flow: $ The Net Present Value (NPV) of this project is: $ Based on this analysis, should you pursue this project: A. Yes B. No