What is the pw of mine, When the mine is closed, $15M will

What is the pw of mine

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Reference no: EM131807380

Western Coal, Inc., is considering an open-pit mine. The rights to mine on public land are expected to cost $25M, and development of the infrastructure will cost another $12M. The mine should produce a net revenue of $8M per year for 20 years. When the mine is closed, $15M will be spent for reclamation. If Western Coal uses an interest rate of 15%, what is the PW of this mine?

Reference no: EM131807380

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