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What would the present value of the mine revenue

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Question - In 2016, the Dhupuma Plateau mine was expected to produce 100 kt of bauxite per annum for the first four years of its operation (from 2017 to 2020) and 500 kt of bauxite per annum for the next 15 years. What would the present value of the mine's revenue have been in 2016, assuming a simple annual discount rate of 3% and a bauxite price of $38 per tonne?

Reference no: EM132937574

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