ESSENTIAL OF CORP FINANCE W/CONNECT
ESSENTIAL OF CORP FINANCE W/CONNECT
8th Edition
ISBN: 9781259903175
Author: Ross
Publisher: MCG CUSTOM
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Chapter 8, Problem 3CC
Summary Introduction

Case synopsis:

Company S, who is the owner of Gold Mining B, is assessing a new gold mine in State SD. Person D, the geologist of the company, has completed his analysis of the mine site. He has projected that the mine will be productive for eight years, after that the gold will be fully mined. Person D has taken the gold deposits’ estimate to Person A, the financial officer of the company. He is responsible for estimating whether the company must open the new mine.

Person A has projected that if the company opens the new mine, then it would cost $650 million at present, and it would have a cash outflow of $72 million at nine years from the present.

Adequate information:

  • The estimate of Person A also includes the estimates of Person D to identify the income from the mine.

To state:  A VBA script, which computes the payback period for a project.

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ESSENTIAL OF CORP FINANCE W/CONNECT

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