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do not make none sense it has every info needed Question 5. A mining company has developed two alterative mine plans (Mine Plan A &

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do not make none sense it has every info needed

Question 5. A mining company has developed two alterative mine plans (Mine Plan A \& Mine Plan B) for the potential exploitation of a nickel deposit. While both mine plans envisage a mine life of 5 years, the Gross Margin Cash Flows, Depreciation Schedule and CAPEX requirements of each are significantly different as shown in the Tables below. In both cases the company has a cost of equity capital of 12.10%. It intends to finance all CAPEX requirements using 40% equity and 60% debt. The debt will carry an interest rate of 10.50% and must be repaid as quickly as possible from any positive project cash flows. The company income tax rate over the life of the operation will be 30%. Using the Tables below to guide your evaluation process, provide a justified recommendation regarding the most appropriate development option for this deposit (Mine Plan A or Mine Plan B). Note: You do not need to submit the completed Tables - just your final result with a corresponding recommendation

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