What is the irr for the gold mine

Reference no: EM133465292

Discussion Post

The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, it is a "golden opportunity." The mine will cost $3,400,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $575,000 at the end of the first year, and the cash inflows are projected to grow at 8% per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $450,000 at the end of Year 11.

Question 1) What is the IRR for the gold mine?
Question 2) The Utah Mining Corporation requires a return of 13% on such projects. Should the mine be opened?

Reference no: EM133465292

Questions Cloud

What will the companys dividend be in seven years : What will the company's dividend be in seven years? What are the two components of the total return on a share of stock?

Discuss how culture affects management of an organization : Discuss how culture affects the management of an organization from a global perspective. Globalization impacts the management efforts required to manage

How competent verbal and nonverbal communication theories : How competent verbal and nonverbal communication theories affect relationships gives you tools for developing and maintaining more satisfactory relationships.

Discuss their use by hr during employee recruitment process : Identify 2 technology tools, and discuss their use by HR during the employee recruitment process. There are many technology tools used during the recruitment

What is the irr for the gold mine : What is the IRR for the gold mine? The Utah Mining Corporation requires a return of 13% on such projects. Should the mine be opened?

Review the course objectives and the knowledge, skills : exploration of the evolving role of a Strategic Human Resource Management (SHRM) topic that reflects one of the significant topics of our course.

Describe three types of perceptual errors : Describe three types of perceptual errors and provide an example of each?

Describe information systems based on the video : Describe information systems based on the video. What are the five components of IS? Provide examples as well as details to describe what these components do.

Describe strategies and orientations for remedying : Explain at least four strategies or ways to approach your spouse to more effectively manage this conflict.

User Account

All Pages