#16

You are considering investing in a new gold mine in South Africa. Gold in South Africa is buried very deep, so the mine will require an initial investment of $290 million. Once this investment is made, the mine is expected to produce revenues of $29 million per year for the next 20 years. It will cost $15 million per year to operate the IRR of this investment. (Hint: Plot the NPV as a function of the discount rate.) (Select the best choice below.) A. There are multiple IRRs. B. The IRR is infinite as a result of the perpetuity. C. The IRR is about 12%