AU Gold Mine,a European Mining Firm,owns a Gold Mine in Africa.The

AU Gold Mine,a European mining firm,owns a gold mine in Africa.The mine has a total 25.6 million ounces of gold.The firm extracts 12 million ounces in year 1 and the rest of the gold is extracted in year 2.The extraction cost for the year 1 and year 2 are £172/oz and £180/oz respectively.The current forward prices are £531.25/oz for a one-year contract and $562.5/oz for a two-year contract.The annually compounded risk-free rates are 3.75% for one-year zero-coupon bonds and 4% for two-year zero-coupon bonds.What is the present value of the cash flows from the mine,assuming that payments for the mined gold are received at the end of each year?

A) £8.96 billion
B) £4.48 billion
C) £7.34 billion
D) £5.28 billion