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A proposed gold mine would require the investment of $ 2 . 6 5 million at the beginning of the first year and a further
A proposed gold mine would require the investment of $ million at the beginning of the first year and a further investment of $ million at the end of the first year. Mining operations are expected to yield annual yearend profits of $ million starting in year three. The mine will sustain eight years of mining operations, once it reaches profit. At the end of the last year of operations, the mining company would also have to spend $ million on environmental restoration. Would the project provide the mining company with a rate of return exceeding its cost of capital? If the rate of return was how much moreless would the NPV be
Multiple Choice
Yes, $
Less $
Yes, $
More $
No $
Less $
Yes, $
More $
Yes, $
More $
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