Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 points You are newly appointed Technical Manager at the mine. Your General Manager tasked you with a decision to choose between sinking a shaft

image text in transcribed
5 points You are newly appointed Technical Manager at the mine. Your General Manager tasked you with a decision to choose between sinking a shaft or using dump trucks to transporto from undergroud to surface of the mine. Dump trucks will have an operating costs of R597,152 per month with the first cost of R711.136 Income is expected to be 16 month with expenses for utility, labour, taxes, etc expected to average R801475 per month. Alternatively, shaft will cost R2.757,787 to sink and 1792.897 per month to operate is expected to be 923.491. If the salvage values are assumed to be 10% of the first cost for dump trucks and 35 of the first cost of the shaft after a year planning period determine al worth for shaft sinking at an interest rate of 12% per year, compounded monthly

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis For Financial Management

Authors: Robert C. Higgins

12th International Edition

1260091910, 9781260091915

More Books

Students also viewed these Finance questions