Deep mining and precious metals are separate 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 costs of $950,000 and anticipated annual cash flows of $165,000 a year for 12 years Which firms, if either, should accept this project A) deep mining only B) precious metals only C) both deep mining and precious metals D) neither deep mining nor precious metals E) cannot be determined without further information

Question

Deep mining and precious metals are separate 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 costs of $950,000 and anticipated annual cash flows of $165,000 a year for 12 years  Which firms, if either, should accept this project  A) deep mining only B) precious metals only C) both deep mining and precious metals D) neither deep mining nor precious metals E) cannot be determined without further information

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Deep mining and precious metals are separate firms that are both considering a silver mining project. Deep mining is in the actual mining business and

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