ASSIGNMENT ON NPV QUESTIONS Q1. An softdrink company's warehouse is being planned. The estimated initial investment is Rs. 20,00,000. The estimated...

Grand Banks Mining Inc. plans a project to strip mine a wilderness area. Setting up operations and initial digging will cost Rs. 50,00,000. The first year's operations are expected to be slow and net a positive cash flow of only Rs. 500,000. Then there will be four years of Rs. 20,00,000 cash flows after which the ore will run out. Closing the mine and restoring the environment in the sixth year will cost Rs. 10,00,000.million. Calculate the project's NPV at a cost of capital of 12% and the IRR to the nearest whole percent.