Solution-Equivalent annual cost of the shaft

Equivalent annual cost of the shaft

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A mine shaft is to be sunk at a cost of $200 million. The life of the shaft is estimated to be 25 years during which time the average planned rate of mineral production is 2.6 million tonnes per year. If the annual interest rate is 6%, determine i. The equivalent annual cost of the shaft in $ per year ii. Corresponding production cost in $ per tonne mined

Reference no: EM133249441

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Equivalent annual cost of the shaft

Reference no: EM133249441

Reference no: EM133249441

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