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o Extra Credit Question 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 are 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 $60 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-ima method, with an assumed salvage value of zero for tax 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 t4 working capital Please provide the Free Cash Flow for each year of this project (two through tud) 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: $ T3 Cash Flow: $ T- Cash Flow: S The Not Present Value (NPV) of this project is: $ Based on this analysis, should you pursue this project: O A Yes B. No OO

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