Question
Mineral reserves Mr = 500 000 tons of quartz sands Acquisition cost K = $3 million Overburden removal, road upgrade, marketing Kg = $550 000
Mineral reserves Mr = 500 000 tons of quartz sands
Acquisition cost K = $3 million
Overburden removal, road upgrade, marketing Kg = $550 000
Equipment cost Ke = $650 000
Annual tonnage T = 25000
Cost the mine, process, package and transport per tonne C = $25
Tax rate = 35%
Annual depreciation straight-line method M =
Salvage value S = $240 000
Rate of return r = 20%
What equation for the NPV of the project looks like using the numbers above and assuming continuous cash flow and continuous discounting?
I should note that the task is similar to my homework!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started