What is the irr for the gold mine

Assignment Help Financial Management

Reference no: EM131320753

The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $3, 500,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $455,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $510,000 at the end of Year 11.

What is the IRR for the gold mine? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131320753

Questions Cloud

Distinguish between a paper session and a poster session : When an author submits a manuscript to a journal, what is the general process by which the decision whether or not to publish the paper is made?

Description of types of facilities and services offered : Write a 750- to 1,050-word paper in which you describe your selected facility. Include the following elements in your paper: Summary of your research. Description of types of facilities and services offered in your local community

What options would be morally justified under each religion : In George's analysis of his own life, how would each religion think about the value of his life as a person, and value of his life with ALS?What sorts of values and considerations would each religion focus on in deliberating about whether or not G..

Which of the given statements are fundamentally correct : Which of the following statements are fundamentally correct and which ones are fundamentally incorrect if taken at their face value without implied interpretation?

What is the irr for the gold mine : The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $3, 500,000 to open and will have an economic life of 11 years. What is the IRR f..

Content marketing becoming the new rage of b2b marketers : The topic for this written assignment is why is Content Marketing becoming the new rage of B2B marketers? Your paper should be two to three pages in length. Links to audio/visual content should also be included to support your key messages.

Calculate and tabulate occupation probability : In what energy range (or above what energy) will the Boltzmann approximation give less than 1% error (a) in electron occupation, and (b) in hole occupation? Use the Fermi energy, EF, as the reference.

Determine the optimal mix of products : Determine the optimal mix of products in terms of maximizing contribution to profits for the period. Then, find the range of optimality for the profit coefficient of each variable.

Examine one of favorite products : Examine one of your favorite products, and describe how the manufacturer utilizes the marketing channels to get the product to you, the end user. Evaluate the company's distribution channels.

User Account

All Pages