{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T17:01:02-04:00", "answer_date": "2024-06-06 17:01:02", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2378085", "url": "\/study-help\/questions\/consider-the-following-project-you-own-a-mining-company-a-2378085", "question_creation_date_js": "2024-06-06T17:01:02-04:00", "question_creation_date": "Jun 06, 2024 05:01 PM", "meta_title": "[Solved] Consider the following project. You own a | SolutionInn", "meta_description": "Answer of - Consider the following project. You own a mining company. A land owner has approached you about a deal. The land owner | SolutionInn", "meta_keywords": "project,mining,company,land,owner,approached,deal,recently,discovered,abundance,diamonds,buried", "question_title_h1": "Consider the following project. You own a mining company. A land owner has approached you about a deal. The land owner has recently discovered that", "question_title": "Consider the following project. You own a mining company. A land owner", "question_title_for_js_snippet": "Consider the following project You own a mining company A land owner has approached you about a deal The land owner has recently discovered that there is an abundance of diamonds buried on the property The land owner knows nothing of mining, and has no desire to learn The land owner would like you and your company to mine the diamonds The landowner will retain ownership of the diamonds, your company will simply get them out of the earth In exchange, the landowner will pay you an upfront fee of $1,000,000 today, and then a bonus of $3,000,000 in four years from now (when the mine is depleted) You will have to cover your own operating costs during the project Your operating costs will be $600,000, $700,000, $800,000, and $1,000,000 in years one, two, three, and four respectively What is the IRR of this project Please explain ", "question_description": "

Consider the following project. You own a mining company. A land owner has approached you about a deal. The land owner has recently discovered that there is an abundance of diamonds buried on the property. The land owner knows nothing of mining, and has no desire to learn. The land owner would like you and your company to mine the diamonds. The landowner will retain ownership of the diamonds, your company will simply get them out of the earth. In exchange, the landowner will pay you an upfront fee of $1,000,000 today, and then a bonus of $3,000,000 in four years from now (when the mine is depleted). You will have to cover your own operating costs during the project. Your operating costs will be $600,000, $700,000, $800,000, and $1,000,000 in years one, two, three, and four respectively. What is the IRR of this project? Please explain.<\/p>", "transcribed_text": "", "related_book": { "title": "Microsoft Excel Data Analysis And Business Modeling", "isbn": "0137613660, 9780137613663", "edition": "7th Edition", "authors": "Wayne Winston", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/63fd8aced7297_24732.jpg", "uri": "\/textbooks\/microsoft-excel-data-analysis-and-business-modeling-7th-edition-9780137613663", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8860433359", "uri": "\/textbooks\/american-high-school-poets-fall-2023-1st-edition-979-8860433359-358564", "name": "American High School Poets Fall 2023", "edition": "1st Edition" }, "question_posted": "2024-06-06 17:01:02", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-following-selected-transactions-for-abc-inc-occurred-during-the", "description": "The following selected transactions for ABC, Inc., occurred during the month of April. 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