Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Case - Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Garrett, the company's financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine.
Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $635 million today, and it will have a cash outflow of $45 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table on this page. Bullock Mining has a 12 percent required return on all of its gold mines.
Year
Cash Flow
0
-$635,000,000
1
89,000,000
2
105,000,000
3
130,000,000
4
173,000,000
5
205,000,000
6
155,000,000
7
145,000,000
8
122,000,000
9
-45,000,000
Required - Based on the information given, calculate:
i. Payback period
ii. Discounted payback period
iii. Net present value
iv. Profitability Index
Based on your answer, should the company open the mine?
BSM 481- Prepare the journal entry to record the payment of the amounts due for the month to the government for FICA and income tax withholdings.
Write a brief explanation of 200 words on how the experienced accountant was able to determine the facts noted in the instructions
calculation of carrying amount of an asset.1.water company owns 80 percent of fire companys outstanding common stock.
Make a table of ratios for both the years for both companies. Interpret and compare the results of the ratios of both the years for both companies
How much is the amount to be used for the performance evaluation of the segment manager? Total direct fixed costs - controllable 120,000
Describe each of the components of the Accounting Equation (Assets, Liabilities & Equity) and discuss their importance to a business owner.
A recent advertisement in the financial section, how long would it take to double your money at a simple rate of 14 percent, compounded annually?
What is the required return on Green's equity after the restructuring? Required Return?
In helping Tom better understand how to properly record accounting transactions, his part-time accountant friend Carla showed him an example. A new soda machine costs $525. The cost to service the soda machine is $95 quarterly. Supplies for one month..
Prepare an amortization table for Sycamore Co. assuming the effective interest method is used and prepare an amortization table for Sycamore Co. assuming the market rate was 6% and the effective interest method is used
Make the journal entry to record the redemption. Assume that on July 1, 2019, Concord Co. redeems half of the bonds at a cost of $1,126,600 plus
Which one of the following situations reflects a weak internal control system? Effective cash management and control includes all of the following except. The inventory account a manufacturer uses to record the cost of products completed and availabl..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd