Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - NPV and IRR Analysis - After discovering a new gold vein in the Colorado mountains, CTC Mining Corporation 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 $900,000 for new mining equipment and pay $165,000 for its installation. The mined gold will net the firm an estimated $350,000 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.
a. What are the project's NPV and IRR?
b. Should this project be undertaken if environmental impacts were not a consideration?
c. How should environmental effects be considered when evaluating this or any other project? How might these concepts affect the decision in part b?
A company has outstanding 8 per cent debentures of Rs.10,00,000 on which interest is payable annually on 31 December. The debentures are due for redemption at par on 1.1.1993. The market price of debenture at 31.12.1989 was Rs.103 cum-interest.
If the firm wants to make the profitability index to equal to 1 for Project Little League, the initial outlay has to be:
If the plant lasts for 3 years and the cost of capital is 12%, what is the approximate break-even level (accounting) of the annual sales?
Elzear & Co. expects its EBIT to be $75,000 every year forever. The firm can borrow at 10%. Elzear currently has no debt, and its cost of equity is 14%.
Why does the SBA concentrate on providing management and financial assistance to small businesses?
What does "assignment" mean and why would a lender want to assign a mortgage loan?- What is meant by a "purchase-money" mortgage loan? When could a loan not be a purchasemoney mortgage loan?
One of the biggest decisions you have as a team is to decide how many of these details to include in your memo to employees. How much do people need to know? You may invent more information to give employees a full sense of what is happening.
Bucher Credit Bank is offering 6.1 percent compounded daily on its savings accounts. How much will you have in the account in 5 years
Why currency fluctuation occurs? Discuss in details the concept of Currency Appreciation and Depreciation with strong arguments.
Management is evaluating a$70,000 debt issue with a 7.5 percent coupon rate. If the firm issues the debt, the proceeds will be used to repurchase stock. What will the earnings per share be if the debt is issued and the economy booms?
What do you understand by the term risk control and discuss ANY TWO (2) hazard controls that can be used to mitigate against risk in an organization?
At the end of May, Robertson Corporation has provided services to customers, but it has not yet billed these customers nor have any of them paid.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd