Please answer the following questions A project has and initial cost of $32 000


4.A company must spend $900,500 for new mining equipment and pay $250,000 for its installation. The gold mined will net the firm an estimated $345,000 each year for the 5-year life of the vein. CTC’s cost of capital is 14%. For the purposes of this problem, assume that the cash inflows occur at the end of the year.

  1. What are the project’s NPV and IRR?
  2. Should this project be undertaken if environmental impacts were not a consideration?
  3. How should environmental effects be considered, or any other, project?