Question
A piece of land may be purchased for $753957 to be strip mined for the underlying coal. The annual net income for the mined coal
A piece of land may be purchased for $753957 to be strip mined for the underlying coal.
The annual net income for the mined coal is expected to be $293128 for 10 years.
At the end of the ten years, the surface of the land must be restored due to federal government regulation. This reclamation will cost $1340431.6.
Using a discount rate of 12.5% calculate the Net Present Value of the Project. Give your answer to two decimal places.
A piece of land may be purchased for $753957 to be strip mined for the underlying coal. The annual net income for the mined coal is expected to be $293128 for 10 years. At the end of the ten years, the surface of the land must be restored due to federal government regulation. This reclamation will cost $1340431.6. Using a discount rate of 12.5% calculate the Net Present Value of the Project. Give your answer to two decimal places. Answer: 1036408.29 The correct answer is: 456145.15Step by Step Solution
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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
