1. Amanda is a project manager for a mining company that is considering investing in a new, 15-year mine. It would incur initial costs of $20 million and would cost at the end of the project an additional $5 million (to shut down the mine). During the 15 years, the project would yield $3 million annual profits (year-end). Find the NPV of this project if cost of capital is 12%. ( Show all work)

2. What is the irr of the following set of cash flows? year 0 cash flow -26,300, year 1 cash flow 8400 year 2 cash 11300 and year 3 cash flow 16500.