Your  company is planning to open a new gold mine which will cost $3million  to build with the expenditure occurring at the end of year three years from today. The mine will bring year end after tax cash inflow of$2million at the end of two succeeding years. And then it will cost $0.5million to close down the mine at the end of third year of operation what is project IRR

Q: A firm has invested $700 in a new machine that is expected to last for the next 5 years. The machine…

A: Free cash flow is that amount which is earned by the investor from the project. It is the net amount…

Q: Lauren Steel Company is considering investing in manufacturing equipment expected to cost $160,000.…

A: Net present value(NPV)  is the difference  between present value of all cash inflows and initial…

Q: The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset…

A: Calculation of Depreciation- Depreciation per year = Cost / Useful lifeDepreciation per year = $300…

Q: What is the NPV of the project?

A: Capital budgeting methods are the methods used for finding the profitability of the investment…

Q: Pam's Company estimates the following cash flows and depreciation on a project that will cost…

A: Annual Rate of Return: It is that return which is anticipated to be generated by an asset or any…

Q: forew You own building V and building S. The next cash flow for each building is expected in 1 year.…

A: Perpetual cashflows means cash flows which will occur forever or for a indefinite period.

Q: You own building U and building M. The next cash flow for each building is expected in 1 year.…

A: 1. Perpetual cashflows means cash flows which will occur forever or for a indefinite period. 2.…

Q: LandMING has borrowed $8 Million to implement a new production line in its Dallas metal plant. If…

A: Variables in the question:Q1:First Cost=-$950000Replacement Cost, year 2=-$450,000AOC,…

Q: Calculate the net present value of the strip mine if the cost of capital is 1, 6, 9, 30, 42, and 75…

A: Net Present Value: It represents the investment's or project's profitability in dollar terms. It is…

Q: Alma has used the estimates provided by Dan to determine the revenues that could be expected from…

A: The payback period is a measure of how long it for the cash flows to cover the initial investment.…

Q: Strip Mining Incorporated can develop a new mine at an initial cost of $16 million. The mine will…

A: Initial cost = $16 millionCash flow in year = $42 millionCost of reclaiming the land in year 2 = $27…

Q: OA-90% OB. -100% OC. -110% OD. -70%

A: The Modified Internal Rate of Return (MIRR) considers the cost of capital and assumes that positive…

Q: I need a detailed explanation on to solve this problem: You plan to open a grooming center. The…

A: Formula for discount factor:Where r  denotes the required return that is 13%.

Q: A new molding machine is expected to produce operating cash flows of $109,000 per year for 4 years.…

A: Net present value refers to the technique of capital budgeting used to evaluate the profitability…

Q: at is the expected net income (after tax) in Year 3 if the proposed investment is undertaken? Round…

A: Summary of the relevant information provided in the question : New Machine Cost = $ 303,000 Sales…

Q: Click to see additional instrùctions The internal rate of return, rounded to two decimal places as a…

A: Internal Rate of Return The internal rate of return refers to the exact return that an investment…

Q: Calculate the net present value of the strip mine if the cost of capital is 3, 9, 11, 77, 87, and 92…

A: Net present value is a capital budgeting tool that helps understand the feasibility of a project.

Q: A mining company is deciding whether to open a strip mine with an initial outlay at t = 0 of $1.5…

A: Part 2: Explanation:Step 1: NPV Profile SketchTo sketch the NPV profile, we plot NPV against…

Q: The Company is evaluating investing in a new metal stamping machine costing $80,458. The Company…

A: Internal rate of return, IRR is the discount rate where the present value of inflows equals present…

Q: As entrepreneur is considering raising a bank loan to buy a firm year life span machine costing two…

A: The capital budgeting technique of the company provides analysis in terms of long term projects. It…

Q: Company ABC is introducing a new product to the market that is expected to bring $50k annual revenue…

A: A capital budgeting decision is a one-time investment that is expected to pay off over some time.…

Q: Strip Mining Inc. can develop a new mine at an initial cost of $5 million. The mine will provide a…

A: Net present value refers to the present value of all the cash outflows compared with the initial…

Q: Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the…

A: The payback period is a financial metric used to determine the length of time it takes for an…

Q: The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer,…

A: IRR is regarded as one of the most important Capital Budgeting Techniques.Internal rate of return is…

Q: Astor Industries plans to automate its production process. The new equipment will cost $460,000 and…

A: NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…

Q: Raliegh, a nonprofit organization, estimates that it can save $23,000 a year in cash operating costs…

A: b.) Payback PeriodPayback period = Initial Investment /Cash Inflow= 90000 / 23000= 3.9130 yearsc.)…

Q: A corporation is considering purchasing a new plant asset. The asset will cost $30,000. The…

A: NPV is one of the technique of capital budgeting being used in business. NPV means net present value…

Q: Need help with this Question

A: Step 1: