Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A gold deposit, with reserves for exploration for over a hundred years, produces average profits of $4,000,000/year. Calculate the value of the mine, considering that

A gold deposit, with reserves for exploration for over a hundred years, produces average profits of $4,000,000/year. Calculate the value of the mine, considering that in the next two years the mine will not operate due to equipment renewal. The opportunity cost of capital is 15%a.a. Answer: $20,163,831.13

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

The International Corporate Governance System Audit Roles And Board Oversight

Authors: F. Lessambo

1st Edition

134947178X, 978-1349471782

More Books

Students also viewed these Accounting questions

Question

10.7 Define aggression and its different types. (APA 1.1, 1.3)

Answered: 1 week ago

Question

What is the effect of word war second?

Answered: 1 week ago

Question

1. Describe the types of power that effective leaders employ

Answered: 1 week ago