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Deep mining and precious metals are separarte firms that are both considering a silver mining project. Deep mining is in the actual mining business and
Deep mining and precious metals are separarte firms that are both considering a silver mining project. Deep mining is in the actual mining business and has an aftertax cost of capital of 16.2 percent. Precious metals is in the precious gem retail business and has an aftertax cost of capital of 13.4 percent. The project under consideration has initial cost of $950,000 and anticipated annual cash inflows of $165,000 a year for 12 years. Which firms , if either , should accept this project? do not use excel or word
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