What roots are there for the pw equation

Assignment Help Financial Management

Reference no: EM131459824

A coal deposit can be mined more rapidly if a thirddragline and conveyor system is added. The initialcost would be $1.5M. Annual revenues for each ofthe next 12 years would increase from $800K to$1200K, and then for the next 6 years, revenueswould drop from $800K to $0. Thus, the mining is50% faster, and the deposit is depleted 6 yearsearlier. The system will have no salvage value. What roots are there for the PW equation? Is there a mean-ingful IRR? Is the third dragline economicallyattractive if iis 20%? Graph the PW for interest ratesof 0% to 100%?

Reference no: EM131459824

Questions Cloud

Output of permanent increase of investment spending : Using the "AA" and "DD" model from the course text illustrate the effects on exchange rates and aggregate output of a permanent increase of investment spending.

How much will you be able to withdraw at end of five years : How much will you be able to withdraw at the end of 5 years?

Potential benefits and costs of such outsourcing : What are the potential benefits and costs of such outsourcing?

How online anonymity might affect forensic investigations : Anonymity and Digital Forensics Given what you know about anonymity, would you argue for its maintenance online or against it? Make an ethical case that is supported by biblical principles.

What roots are there for the pw equation : A coal deposit can be mined more rapidly if a thirddragline and conveyor system is added. What roots are there for the PW equation

What factors that might support this implication : It is often argued that price wars may be more likely to occur during low-demand periods than high-demand periods.

What amount will be in your account after five years : What amount will be in your account at the end of 5 years?

Stock ownership situation : It is now year 9 and you are thinking about buying the bond from its owner. Interest rates are now 9%. (Taylor & Greenlaw, 2014, p. 403).

Calculate the relative risk of gestational diabetes mellitus : What was the aim of the study - What study design was used? Was it appropriate? (Consider the applications of the design, advantages and disadvantages in your justification)

User Account

All Pages