Concept of a deferred annuity for australian mine

Assignment Help Business Management
Reference no: EM132798222

Highland Mining and Minerals Co, analyzes the purchase of two gold. You will make a single investment. The Australian mine will cost $ 1,600,000 and produce $ 300,000 per year in years 5-15 and $ 500,000 per year in years 16-25. The United States gold mine will cost $ 2 million dollars and will produce 250,000 dollars annually for the next 25 years. The cost of capital is 10 percent.

a) What investment should you make? (Note: When looking at the present value factors for this problem, you will need to use the concept of a deferred annuity for the Australian mine. Returns for years five through 15 inclusive represent 11 years: returns for years 16 through 25 represent 10 years).

Reference no: EM132798222

Questions Cloud

What is the cost of equity for the new project : Your company's tax rate is 28% and the beta factor of this new investment is 1.5. What is the cost of equity for the new project
When would such an approach not be desirable : For sparse data, discuss why considering only the presence of non-zero values might give a more accurate view of the objects than considering the actual.
What level of incremental sales is associated : What level of incremental sales is associated with introducing the new pizza in this case?
Prepare all necessary closing journal entries for December : Fireplaces R US Inc. is in process of preparing their financial statements as at December 31, 2020. Prepare all necessary closing journal entries for December
Concept of a deferred annuity for australian mine : Highland Mining and Minerals Co, analyzes the purchase of two gold. You will make a single investment. The Australian mine will cost $ 1,600,000
Discussion on present cloud computing architecture : Provide 2 page documentation on present cloud computing architecture. The paper should include body and reference page. An abstract and introduction.
Identify one company that actually prospered : Identify one company that was negatively affected and explain the reasons why that happened.
Define futuristic model and architecture for cloud computing : Provide 2 page documentation on Futuristic model and Architecture for Cloud Computing. The paper should include body and reference page.
What is the equivalent annual saving : What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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