Aeromag, Financial Management

Assignment Help:

Our geologist, Rebecca Paulka, has estimated from the earlier exploration that the Malian prospects have a 30% likelihood of containing economic quantities of uranium ore, the Niger properties have a 25% likelihood but the WA prospect has only about a 10% likelihood of containing economic ore. The directors have therefore decided to concentrate exploration activities in Mali and Niger.

The discovery of an economic ore body is likely to be worth about $30m to FJE as we can sell it on to a larger company. Rebecca has said that the best way to start would be to conduct an aeromag survey in both Mali and Niger, and André's advice is that this would cost about US$100 per square kilometre in both countries. An aeromag equipped aircraft would be available in about 3 months in Mali and in about 2 months in Niger. Set up costs would be about $20,000 in each case.

We have about 1,500km2 of exploration territory in each of the two countries and a survey would only take a few days. Rebecca would do the analysis as part of her normal work.


Related Discussions:- Aeromag

The key stages of a typical procurement cycle, QUESTION 1 Discuss the r...

QUESTION 1 Discuss the role and contribution of the procurement function in an organisation. QUESTION 2 Discuss the main objectives of purchasing negotiations. Compare

Which ratios would a banker be most interested, Which ratios would a banker...

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain. Bankers and another lenders use li

return on equity, Lee Sun's has sales of $6,000, total assets of $5,000, a...

Lee Sun's has sales of $6,000, total assets of $5,000, and a profit margin of 10 percent. The firm has a total debt ratio of 40 percent. What is the return on equity?

Show the accept-reject criteria, Q. Show the Accept-Reject Criteria? Ac...

Q. Show the Accept-Reject Criteria? Accept-Reject Criteria:- If the actual payback period is not more than the predetermined payback period...................... Project

What is share exchange, What is Share exchange    Predator company off...

What is Share exchange    Predator company offers their shares in exchange for target company's shares. So target shareholders become part of predator shareholders and so have

Calculate tax gain or loss, High Tech Production Inc. purchased a comp...

High Tech Production Inc. purchased a computerized measuring device two years ago for $80,000. This equipment falls into the five-year category for MACRS depreciatio

Case Let 2, How would you judge the potential profit of Bajaj Electronics o...

How would you judge the potential profit of Bajaj Electronics on the first year of sales to booth Plastics and give your views to increase the profit?

Rejecting proposed projects when using net present value, What is the decis...

What is the decision rule for accepting or rejecting proposed projects when using net present value? When going with the net present value decision rule any project with a net

Fraud and society and analytical techniques, Fraud and Society and Analytic...

Fraud and Society and Analytical Techniques: Fraud and Society - The effects and financial consequences of fraud in society including the individual, older people, financial

Write Your Message!

Captcha
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