Reference no: EM132494347

Canadian Metal, Mining, and Petroleum Company is analyzing two projects for possible investment. Only one investment will be made. The first project is an oil drilling project in Alberta at a cost of $510 million that will produce $102 million per year in Years 5 through 10 and $205 million per year in Years 11 through 20. The second project is an expansion of an aluminum smelter in Mapletree, Quebec, and will cost $510 million and will produce $89 million per year for Years 2 through 20. The cost of capital is 10 percent.

a-1. Calculate the net present value for each project. (Set calculator to 4 decimal places. Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter your answers in whole dollars, not in millions - for example if your answer is 1,000,000 enter 1,000,000 and not 1.)