What is the pw of the slurry pipeline

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Reference no: EM131807378

Western Coal is considering a modification of its plans for the open-pit mine described in Problem 5.31. Adding a coal-slurry pipeline (its life is also 20 years) will increase the first cost by $4M, increase annual net revenues by $750K, and increase closure costs by $1M. If the interest rate is 15%, what is the PW of the slurry pipeline? (Answer: PW = $633.2K)

Reference no: EM131807378

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