Case synopsis: Company S, who is the owner of Gold Mining B, is assessing a new goldmine in State SD. Person D, the geologist of the company, has completed his analysis on 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 an estimate of the gold deposits to Person A, the financial officer of the company. He is estimating whether the company must open the new mine. Person A has projected that if the company opens the new goldmine, then it would cost $525 million at present, and it would have a cash outflow of $35 million at the ninth year from the present. Adequate information: The estimate of Person A also includes the estimates of Person D to identify the income from the gold mine. To construct: A spreadsheet to compute the payback period, IRR ( Internal rate of return ), MIRR (Modified internal rate of return), and NPV ( Net present value ) of the estimated mine

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Chapter 9, Problem 1M

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Case synopsis:

Company S, who is the owner of Gold Mining B, is assessing a new goldmine in State SD. Person D, the geologist of the company, has completed his analysis on 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 an estimate of the gold deposits to Person A, the financial officer of the company. He is estimating whether the company must open the new mine.

Person A has projected that if the company opens the new goldmine, then it would cost $525 million at present, and it would have a cash outflow of $35 million at the ninth year from the present.

Adequate information:

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

To construct: A spreadsheet to compute the payback period, IRR (Internal rate of return), MIRR (Modified internal rate of return), and NPV (Net present value) of the estimated mine

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