Answer:
Location 2 will cost the least to the company to mine.
Explanation:
a) Data and Calculations:
Locations  Cost of land     Cost of       Cost of mining      Time taken to 
                                         equipment   and reclamation    mine the area 
1                 $100,000      $10,000         $5,000 per day        30 days 
2                 $35,000       $6,000          $4,500 per day        45 days 
3                 $30,000       $7,500          $3,500 per day       120 days 
4                 $40,500       $8,000          $7,000 per day        65 days
Locations  Cost of land     Cost of       Cost of mining                      Total 
                                         equipment   and reclamation                    Costs
1                 $100,000      $10,000         $150,000 ($5,000 * 30)  $260,000
2                 $35,000       $6,000         $202,500 ($4,500 * 45)   $243,500
3                 $30,000       $7,500         $420,000 ($3,500 * 120)  $457,500
4                 $40,500       $8,000         $445,000 ($7,000 * 65)   $503,500