Determining the operating and maintenance cost

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Intan Inc, a well-known mining company is offered to invest in new charcoal mine in 22 Island. The investment required RM300 million as a capital and the company are expected to earn a return of R50 million per year for 20 years. The operating and maintenance cost are RMS million per year. At the end of the contract, the company is required to fill the mine for recreation area in order to eliminate the impact to the environment which will require a cost of RM20 million. lfthe interest rate is 10%, evaluate whether the company should accept or reject the offerl.

Reference no: EM133116275

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