Calculate the IRR of this investment

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You are considering investing in a gold mine in South Africa. Gold in South Africa is buried very deep, so the mine will require an initial investment of $250 million. Once this investment is made, the mine is expected to produce revenues of $30 million per year for the next 20 years. It will cost $10 million per year to operate the mine. After 20 years, the gold will be depleted. The mine must then be stabilized on an ongoing basis, which will cost $5 million per year in perpetuity. Plot the NPV of this project as a function of the discount rate. Calculate the IRR of this investment.

Reference no: EM131835293

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