What is the value of the mine

Assignment Help Finance Basics
Reference no: EM132466154

A diamond mine is expected to produce regular annual cash flows of $1 million for 8 years with the first regular cash flow expected in 1 year from today. In addition to the regular cash flows of $1,000,000, the diamond mine is also expected to produce an extra cash flow of $3,000,000 in 8 years from today. The cost of capital for the mine is 12 percent. What is the value of the mine?

Reference no: EM132466154

Questions Cloud

Describe the symptoms of fraud : Describe the symptoms of fraud that might be evident to a fellow employee.Describe two of the key elements of the Jones fraud- pressure and opportunity.
ER4706 - Applied Instrumentation Assignment : ER4706 - Applied Instrumentation Assignment Help and Solution, University of Central Lancashire, UK. Review of different LMI systems used in cranes industry
What is the value of an investment that will pay investors : What is the value of an investment that will pay investors 6,390 dollars per year for 5 years and will also pay investors an additional 5,540
Determine the times interest earned ratio for the current : Determine the times interest earned ratio for the current and preceding years.Although Caliber Company had enough earnings to pay interest
What is the value of the mine : The cost of capital for the mine is 12 percent. What is the value of the mine?
How much is pablo vending machine worth : Pablo owns a vending machine that has a cost of capital of 12.59 percent. The vending machine is expected to produce annual cash flows of 40,728 dollars
Bianca took out a loan from the bank today for x : Bianca took out a loan from the bank today for X. She plans to repay this loan by making payments of 20,359 dollars per month for a certain amount of time.
What is the buyers total cost of merchandise inventory : What is the buyer's total cost of merchandise inventory?Additional necessary costs of $1,500 were incurred to acquire the goods. No other incentives
What is the value of the skating rink : The cost of capital for the skating rink is 13.39 percent. What is the value of the skating rink?

Reviews

Write a Review

Finance Basics Questions & Answers

  Shape of the comparison distribution

One hundred people are included in a study in which they are compared to a known population that has a mean of 73, a standard deviation

  Value the swap using the forward rate method

A. Draw a diagram showing the annual swap cash flows. B. Value this currency swap for Malone Co. C. What is the implied forward rate established in for each

  Firm conduct to achieve the minimum listing price

What sort of corporate reorganization can the firm conduct to achieve the minimum listing price, holding all else constant?

  Individual written report individual written assignment

individual written report individual written assignment that identifies examines and describes the financing and real

  What is the bond''s current yield

A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883 percent. The bond pays coupons semiannually. What is the bond's current yield?

  Find the equivalent monthly cost over the life of the car

Delivery of the car is made now, and interest at 6 percent accrues on the balance owed. The 36 monthly payments are calculated on the amount owed at EOM 3. Find the equivalent monthly cost over the life of the car of acquiring the car under this alte..

  How many choppers would you have to sell to break even if

you and your friends are thinking about starting a motorcycle company named apple valley choppers. your initial

  What are the operating cash flows in year

a. What are the operating cash flows in each year? b. What are the total cash flows in each year?

  Determine unethical the controller actions

Puebla Corporation is a medium-sized wholesaler of automotive parts. It has ten  stockholders, who have been paid a total of $1 million in cash dividends for 8 consecutive  years.

  Type of life insurance

They are doing well financially but their life insurance needs are high and their budget is tight. What type of life insurance will give them the most protection for their money?

  Balance sheet to potential investors in the company

One way to look at a balance sheet is in terms of the "sources" and "uses" of cash. Of what use is the balance sheet to potential investors in the company?

  Explain the fdic improvement act

How did the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 and the FDIC Improvement Act of 1991.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd