Calculate the average cash flow from the mine

Assignment Help Financial Management
Reference no: EM131084423

A silver mine can yield 13,000 ounces of silver at a variable cost of $32 per ounce. The fixed costs of operating the mine are $52,000 per year. In half the years, silver can be sold for $48 per ounce; in the other years, silver can be sold for only $24 per ounce. Ignore taxes.

a. What is the average cash flow you will receive from the mine if it is always kept in operation and the silver always is sold in the year it is mined?

b. Now suppose you can shut down the mine in years of low silver prices. Calculate the average cash flow from the mine.

Reference no: EM131084423

Questions Cloud

The probability of successful transmission of a message : A wireless data terminal has three messages waiting for transmission. After sending a message, it expects an acknowledgement from the receiver. When it receives the acknowledgement, it transmits the next message.
Calculate the direction of the net electric field : Calculate the direction of the net electric field at the origin due to these two point charges
What is meant by the term global community : What is meant by the term global community? Give an example of how you can participate in the global community as a classroom teacher.
What is the acceleration of the bug in si units : What is the acceleration of the bug in SI units?
Calculate the average cash flow from the mine : A silver mine can yield 13,000 ounces of silver at a variable cost of $32 per ounce. The fixed costs of operating the mine are $52,000 per year. What is the average cash flow you will receive from the mine if it is always kept in operation and the si..
Question regarding the scene of a crime : A suspect is fleeing the scene of a crime. The suspect, brandishing a handgun, allegedly shot a police officer. A second police officer is in pursuit.
What is the value of studying human development : Which theory most interests you and why? What is the value of studying human development?
What is the amount of the annuity purchase required : What is the amount of the annuity purchase required if you wish to receive a fixed payment of $290,000 for 25 years? Assume that the annuity will earn 11 percent per year.
Musical content of pan performances : Though at first the musical content of pan performances came from a certain echelon (layer) of society, it took the performance of the music that "belonged" to another echelon of society to "legitimize" the instrument and its use.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd