stuck, please help Highland Mining and Minerals Company is considering the...

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stuck, please help
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Highland Mining and Minerals Company is considering the purchase of two gold mines. Only one investment will be made. The Australian goid mine will cost $1,602,000 and will produce $318,000 per year in years 5 through 15 and $559,000 per year in years 16 through 25. The US gold mine will cost $2,033,000 and will produce $290,000 per year for the next 25 years. The cost of capital is 10 percent. Use ADopendix D for an approximate answer but calculate your final answers using the formula and financial calculator methods (Note. In looking up present volue factors for this problem, you need to work with the concept of a deferred annuity for the Austratian mine. The returns in years S through 15 actually represent 11 years, the returns in years 16 through 25 represent 10 years) e-1. Calculate the net present value for each project. Note: Do not round intermediete calculations and round your answers to 2 decimal places. o-2. Which investment should be made? Australian mine US. mine b-1. Assume the Australian mine justfies an extra 4 percent premium over the normal cost of copital because of its riskiness and relative uncertainty of cash fiows. Calculate the new net present volue given this assumption Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places

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