What are the project npv and irr

Assignment Help Finance Basics
Reference no: EM132459667

Problem: After discovering a new gold vein in the Colorado Mountains, CTC Mining Corp must decide whether to go ahead and develop the deposit. The most cost-effective method of mining gold is sulfuric acid extraction, a process that could result in environmental damage. Before proceeding with the extraction, CTC must spend $950,500 for new mining equipment and pay $185,500 for its installation. The gold mined will net the firm an estimated $335,000 each year for the 5-year life of the vein. CTC's cost of capital is 14%. For the purposes of this problem, assume that the cash inflows occur at the end of the year.

Required:

Question 1: What are the project's NPV and IRR?

Question 2: Should this project be undertaken if environmental impacts were not a consideration?

Question 3: How should environmental effects be considered, or any other, project?

Reference no: EM132459667

Questions Cloud

What are the two project npv : Your division is considering two investment projects, each of which requires an up-front expenditure of $20 million. You estimate that the investments
Determine the merchandise that was sold prior : What is the amount of the year-end refund liability after the adjusting entry is recorded?
Calculate the npv and irr for type of truck : Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck and decide which to recommend
How to analyze the current computer setting : The objective of discussion centers on how to prevent loss and protecting confidentiality, integrity, and availability of information. Also, to understand how.
What are the project npv and irr : What are the project's NPV and IRR? Should this project be undertaken if environmental impacts were not a consideration?
Estimate of the intrinsic value of a share of the stock : What is your estimate of the intrinsic value of a share of the stock?
Which one of the classifiers are considered computationally : Elaborate on the theories behind these classifiers. Which one of these classifiers are considered computationally efficient for high dimensional problems and.
Financial reporting and analysis assignment : Financial reporting and analysis Assignment Help and Solution - discuss the advantages as well as the limitations of financial ratios. Financial ratios.
Determine the growth rate of the company : Determine the growth rate of the company for each of next three years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify three types of startup firms

Identify three types of startup firms.

  Fund value be at the end of the year for investors to break

A $1 million fund is charging a back-end load of 1%, 12b-1 fees of 1%, and an expense ratio of 1.9%. Prior to deducting expenses, what must the fund value be at the end of the year for investors to break even? Questions 6–12 trace a sequence of trans..

  Balance sheet preparation

Adam and Arin Adams have collected their personal asset and liability information and asked you to put together a balance sheet as of December 31,2015. The following information is received from the Adams family.

  Calculate ebit on the department store order

Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little figurines as gifts for friends.

  The firms annual sales are expected to total 3600000 its

zorn corporation is deciding whether to pursue a restricted or relaxed current asset investment policy. the firms

  Bonds make semiannual payments

Watters Umbrella Corp. issued 15-year bonds two years ago at a coupon rate of 7.8 percent. The bonds make semiannual payments.

  What data to collect from the company

What steps should I take? How would I address network, security, and ethical considerations when deciding what data to collect from the company?

  Save up for a down payment on a house

If the interest rate is 4% and they start at the end of the year when they both get bonuses from their employers, what do they have to put aside annually?

  How can swaps be used to reduce the risks associated

How can swaps be used to reduce the risks associated with debt contracts?

  Should porsche hedge its foreign exchange risks

Should Porsche hedge its foreign exchange risks and How does Porsche hedge its foreign exchange risk?

  Calculate the price of a firm with a plowback ratio

Question - Calculate the price of a firm with a plowback ratio of .60 if its ROE is 20%. Current earnings, E1, will be $5 per share, and k = 12.5%

  What is the current stock price

Beta Corp has an ROE of 15%; has just paid a dividend of $1.50; and pays 10% of its earnings out in dividends, and the appropriate discount rate is 20%; what is the current stock price?

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