The Southern Guru Copper Company operates a large mine in a South American country. A legislator in the National Assembly said in a speech that most of the capital for the mining operation was provided by loans from the World Bank; in fact, Southern Guru has only $1.5 million of its own money actually invested in the property. The cash flow for the mine is: Year Cash Flow $-1.5M 0.9M 3.5M 3.9M 8.6M 4.3M 6 3.1 M 7 1.2M What is the ROR on the mine? O a. 158% O b. 12% O C. 212% d. 146% O 1 2 3 4 сл
The Southern Guru Copper Company operates a large mine in a South American country. A legislator in the National Assembly said in a speech that most of the capital for the mining operation was provided by loans from the World Bank; in fact, Southern Guru has only $1.5 million of its own money actually invested in the property. The cash flow for the mine is: Year Cash Flow $-1.5M 0.9M 3.5M 3.9M 8.6M 4.3M 6 3.1 M 7 1.2M What is the ROR on the mine? O a. 158% O b. 12% O C. 212% d. 146% O 1 2 3 4 сл
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:The Southern Guru Copper Company operates a large mine in a South American
country. A legislator in the National Assembly said in a speech that most of the capital
for the mining operation was provided by loans from the World Bank; in fact, Southern
Guru has only $1.5 million of its own money actually invested in the property. The cash
flow for the mine is:
Year Cash Flow
0
$-1.5M
1
0.9M
2
3.5M
3
3.9M
4
8.6M
5
4.3M
6
3.1 M
7
1.2M
What is the ROR on the mine?
a. 158%
O b. 12%
O c. 212%
O d. 146%
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