Reference no: EM132812048

Question 1: 

a.Calculate the operating cash flows for the gold mine project.

Integrative: Complete investment decision. With the market price of gold at $2,225.00 per ounce, Maritime Resources Corp., a Canadian mining firm, would like to assess the financial feasibility of reopening an old gold mine that had ceased operations in the past due to low gold prices. Reopening the mine would require an up-front capital expenditure of $100.10 million and annual operating expenses of $39.42 million. Maritime expects that over a 7-year operating life it can recover 189,000 ounces of gold from the mine and that the project will have net after-tax terminal value $ 30.1 million. Maritime uses straight-line depreciation, has a 21.04% corporate tax rate, and has an 12.4% cost of capital.

b.Depict on a timeline the net cash flows for the gold mine project.

c.Calculate the internal rate of return (IRR) for the gold mine project.

d.Calculate the net present value (NPV) for the gold mine project.

e.Make a recommendation to accept or reject the gold mine project, and justify your answer.

Question 2

Why are Islamic and Conventional banks different from each other. Briefly explain how Sharia (Islamic) banks and Conventional banks differ from each other. (There are five differences).

Question 3:

INVESTMENT BANKING QUESTION: (PLEASE MAKE A DETAILED ANSWER)

Suppose your managing director asked you to get information for them that you know is confidential and he/she should not have access to. What would you do?