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
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
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 12P
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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
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