Mountain Mining Canada Ltd. (MMCL) is closing its South Face Mine. Due to its strategic location, Can-Do is interested in purchasing this mine. As Can-Do considers its negotiating strategy for purchasing the South Face Mine, it plans to set a “walk-away point.” That is, it wants to determine at the outset the maximum amount it will agree to pay to MMCL for the South Face Mine. If MMCL demands more, then Can-Do will walk away from the deal. The purpose of this memorandum is to recommend Can-Do’s walk-away point.