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  • Answered - Year Cash Flow - $650,000,000 80,000,000 - Bartleby

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    Kwasi Boatey
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    - The owner of Bullock Gold Mining is evaluating a new gold mine that is estimated to be productive for 8 years. - The mine is projected to have initial costs of $650 million and annual operating expenses outlined in a table. It will also have closure costs of $72 million after 9 years. - Bullock Gold Mining requires a 12% return on all gold mines. - A spreadsheet needs to be constructed to calculate the payback period, internal rate of return, and net present value of the proposed mine to determine if it should be opened.

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    - The owner of Bullock Gold Mining is evaluating a new gold mine that is estimated to be productive for 8 years. - The mine is projected to have initial costs of $650 million and annual operating expenses outlined in a table. It will also have closure costs of $72 million after 9 years. - Bullock Gold Mining requires a 12% return on all gold mines. - A spreadsheet needs to be constructed to calculate the payback period, internal rate of return, and net present value of the proposed mine to determine if it should be opened.

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    34 views1 page

    Answered - Year Cash Flow - $650,000,000 80,000,000 - Bartleby

    Uploaded by

    Kwasi Boatey
    - The owner of Bullock Gold Mining is evaluating a new gold mine that is estimated to be productive for 8 years. - The mine is projected to have initial costs of $650 million and annual operating expenses outlined in a table. It will also have closure costs of $72 million after 9 years. - Bullock Gold Mining requires a 12% return on all gold mines. - A spreadsheet needs to be constructed to calculate the payback period, internal rate of return, and net present value of the proposed mine to determine if it should be opened.

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    © All Rights Reserved
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    Flag for inappropriate content
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    5/28/2020 Answered: Year Cash Flow -$650,000,000 80,000,000… | bartleby

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    Business / Finance / Q&A Library / Year Cash Flow -$650,000,000 80,000,000 1 2 121,000,000 162,000,000 3 4 221,00…

    Year Cash Flow -$650,000,000 80,000,000 1 2 121,000,000 162,000,000 3 4 221,0…

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    Asked Dec 2, 2019


    Question 796 views

    Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan
    Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated that
    the mine would be productive for eight years, a er which the gold would be completely mined. Dan
    has taken an estimate of the gold deposits to Alma Garrett, the company's financial o icer. Alma has
    been asked by Seth to perform an analysis of the new mine and present her recommendation on
    whether the company should open the new mine.

    Alma has used the estimates provided by Dan to determine the revenues that could be expected from
    the mine. She has also projected the expense of opening the mine and the annual operating
    expenses. If the company opens the mine, it will cost $650 million today, and it will have a cash
    outflow of $72 million nine years from today in costs associated with closing the mine and reclaiming
    the area surrounding it. The expected cash flows each year from the mine are shown in the table on
    this page. Bullock Gold Mining has a 12 percent required return on all of its gold mines.

    Requirement

    Construct a spreadsheet to calculate the payback period, internal rate of return, and net present
    value of the proposed mine

    https://www.bartleby.com/questions-and-answers/year-cash-flow-dollar650000000-80000000-1-2-121000000-162000000-3-4-221000000-210000000-… 1/1

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