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(e) What extra information do you need to know, in order to calculate when (which year) this Iron Ore mine project becomes profitable, i.e.

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(e) What extra information do you need to know, in order to calculate when (which year) this Iron Ore mine project becomes profitable, i.e. starts to accumulate profit? Suppose $100M is spent on the capital investment at the start of the mining project, followed by spending $10M development cost at the end of each year, while production and selling of the ore starts after 5 years with an annual margin (profit) of $30M. How do you solve this problem and what will be your primary unknown in this calculation? (5 marks) (f) Assume a range of values for your missing parameter values in the above problem, where you need to calculate when (which year) will this Iron Ore mine project accumulate profit, if $100M are spent as the capital investment at the start of the project followed by $10M development cost at the end of each year, while production and selling of the ore starts after 5 years with an annual margins (profits) of $30M. (10 marks)

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