Twelve young professionals invested in a mining business three years ago by extracting coal ores at Sierra Madre Mountain with equal shares. The engineer who survey the site gives the following data: due to latest technology procedures, it is expected to extract 275, 000 tons of ores every year for 35 years with a salvage value of P 3.25 million. Operation, maintenance and other procedural expenses annually costs P 475 per ton of unprocessed coal ores. Annual administrative expenses amounts to P 25 million with a governmental tax of 6% of its gross income. Only 75% of unprocessed ores produced an income of P 825 per ton with an interest rate of 12% effective. Economists expected a rate of dividend of 14%, with this data, find: a) the amount of capital invested by each of the professionals. b) the average depletion cost annually. c) the expected amount of dividend each of the professionals will receive five years from now
Twelve young professionals invested in a mining business three years ago by extracting coal ores
at Sierra Madre Mountain with equal shares. The engineer who survey the site gives the
following data: due to latest technology procedures, it is expected to extract 275, 000 tons of
ores every year for 35 years with a salvage value of P 3.25 million. Operation, maintenance and
other procedural expenses annually costs P 475 per ton of unprocessed coal ores. Annual
administrative expenses amounts to P 25 million with a governmental tax of 6% of its gross
income. Only 75% of unprocessed ores produced an income of P 825 per ton with an interest
rate of 12% effective. Economists expected a rate of dividend of 14%, with this data, find:
a) the amount of capital invested by each of the professionals.
b) the average depletion cost annually.
c) the expected amount of dividend each of the professionals will receive five years from now
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