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After some encouraging the first signs, the mining company is evaluating setting up a gold mine in Western Australia. The mine will take 4 years to prepare and excavate, costing 4 payments of $15 million at the start of each year for the next four years, that is, at t=0, 1, 2 and 3. Once mining starts, the mine is expected to yield a constant $20 million for the next 12 years. The first payment is at t=4 and the last at t=15 The required return of the mine is 9% pa given as an effective annual nominal rate. All cash flows are real and the expected inflation rate is 2% pa given as an effective annual rate. Ignore taxes. The Net Present Value is:

a. $72.44m
b. $76.67m
c. $89.16m
d. $71.94m
e. $84.32m

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