with the market price of gold at c$1,562.50 per ounce (c$ stands for canadian dollars), maritime resources corp., a canadian mining firm, would like to assess the financial feasibility of reopening an old gold mine that had ceased operations in the past due to low gold prices. reopening the mine would require an up-front capital expenditure of c$67.8 million and annual operating expenses of c$19.42 million. maritime expects that over a five-year operating life it can recover 174,000 ounces of gold from the mine and that the project will have no terminal cash flow. maritime uses straight-line depreciation, has a 21% corporate tax rate, and has an 11.2% cost of capital.