Calculate the net present value of the strip mine if the cost of capital is 1, 6, 9, 30, 42, and 75 percent. Enter your answers in millions. For example, an answer of $1.20 million should be entered as 1.20, not 1,200,000. Round your answers to two decimal places. k NPV 1% $ million 6% $ million 9% $ million 30% $ million 42% $ million 75% $ million
The L-S Mining Company is planning to open a new strip mine in western Pennsylvania. The net investment required to open the mine is $13 million. Net cash flows are expected to be +$22 million at the end of year 1 and +$7 million at the end of year 2. At the end of year 3, L-S will have a net
- Calculate the
net present value of the strip mine if the cost of capital is 1, 6, 9, 30, 42, and 75 percent. Enter your answers in millions. For example, an answer of $1.20 million should be entered as 1.20, not 1,200,000. Round your answers to two decimal places.
k NPV 1% $ million 6% $ million 9% $ million 30% $ million 42% $ million 75% $ million -
What is unique about this project?
The NPV is negative at discount rates between % and %, positive from % to % and negative beyond %.
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Should the project be accepted if L-S's cost of capital is 6 percent?
If L-S's cost of capital is 6%, the project is .
Calculate the net present value of the strip mine if the cost of capital is 69 percent.
$ millionShould the project be accepted if L-S's cost of capital is 69 percent?
If L-S's cost of capital is 69%, the project is .
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