User Account

All Pages

Calculate the npv to the nearest dollar

Assignment Help Finance Basics
Reference no: EM132688971

An Australia mining company, QMC is thinking about opening a new gold mine in South Africa. The mine is expected to produce 100,000 ounces of gold per year for 5 years. The current price of gold is US$1700 per ounce and the company will hedge its sales at this price for the 5-year period. The mine is expected to cost A$ 100,000,000 to set up and extraction costs are expected to be US$1350 per ounce for the life of the mine. The appropriate discount rate is 0.17. The current exchange rate is US$ 0.66 /A$. Profits are taxed at 30%. In order to decide the viability of this project, QMC needs to know the NPV. Calculate the NPV to the nearest dollar.

Reference no: EM132688971

Questions Cloud

Explain in detail product is water bottle : FruitX is committed to producing a high-quality product that will promote healthy living. FruitX is selling a flavour infused water bottle made using only
How much would be allocated to the product : The fair values of the product and service are $350 and $150 respectively. Under the relative fair value method, how much would be allocated to the product?
Describe the factors that contribute to job satisfaction : Describe the factors that contribute to job satisfaction for most workers and explain if these factors are entirely under the control of the Organization.
What is the mirr of a project : Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company is able to reinvest cash flows received from the pro
Calculate the npv to the nearest dollar : In order to decide the viability of this project, QMC needs to know the NPV. Calculate the NPV to the nearest dollar.
What kinds of problems would you anticipate : If you were a manager in a manufacturing plant and you were asked to design and implement self-managed work teams, what kind of intervention strategy would you.
Which of the types of accounts have a normal credit balance : On September 5, What account would we credit when we journalize this entry? Which of the types of accounts have a normal credit balance?
Making face mask for protection of flu season : You plan on employing two part time employees for your business of making face mask for protection of flu season ,Inna and Jim. Inna charges $15 an hour
How technology can be used best to socialize new employees : How do you think technology can be used best to socialize new employees and get them productive as quickly as possible? When would using technology not be.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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