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Short answer question. The cash flow associated with a strip mining operation is expected to be...
Short answer question. The cash flow associated with a strip mining operation is expected to be £200,000 in year 1, £180,000 in year 2 and amounts decreasing by £20,000 per year to year 8 when it is assumed the mine will be exhausted. What is the present value of the mine? Assume interest is 7%. Show your working.
Solutions
Expert Solution
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£ 8,18,480.94 Working:
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jeff jeffy answered 2 years agoRelated Solutions
Short Answer Question 4: The following table provides cash flow estimates associated with a projected capital...
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Year Cash Flow
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4 $75,000
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A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash...
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A mining company is deciding whether to open a strip mine, which
costs $1.5 million. Cash inflows of $14 million would occur at the
end of Year 1. The land must be returned to its natural state at a
cost of $12.5 million, payable at the end of Year 2.
Plot the project's NPV profile.
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A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash...
A mining company is deciding whether to open a strip mine, which
costs $2.5 million. Cash inflows of $13.5 million would occur at
the end of Year 1. The land must be returned to its natural state
at a cost of $12 million, payable at the end of Year 2.
What is the project's MIRR at WACC = 10%?
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A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash...
A mining company is deciding whether to open a strip mine, which
costs $2.5 million. Cash inflows of $14 million would occur at the
end of Year 1. The land must be returned to its natural state at a
cost of $11 million, payable at the end of Year 2. Find the
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A mining company is deciding whether to open a strip mine, which costs $1.5 million. Cash...
A mining company is deciding whether to open a strip mine, which
costs $1.5 million. Cash inflows of $13.5 million would occur at
the end of Year 1. The land must be returned to its natural state
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A mining company is deciding whether to open a strip mine, which costs $1.5 million. Cash...
A mining company is deciding whether to open a strip mine, which
costs $1.5 million. Cash inflows of $12.5 million would occur at
the end of Year 1. The land must be returned to its natural state
at a cost of $12.5 million, payable at the end of Year 2.
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%
What is the project's MIRR at WACC...
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the risk-free rate is...
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