Answered step by step
Verified Expert Solution
Question
1 Approved Answer
number 1-2 on excel for #1, with formulas as well che-control-private%2C%20max-age%3D2160 Selle Seth Bullock, the owner of Bullock Gold Mining, is evaluating a now gold
number 1-2 on excel for #1, with formulas as well
che-control-private%2C%20max-age%3D2160 Selle Seth Bullock, the owner of Bullock Gold Mining, is evaluating a now gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Gamott, the com- pany's financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of open- ing the mine and the annual operating expenses. If the company opens the mine, it will cost $725 million today, and it will have a cash outflow of S80 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the fable on this page Bullock Mining has a 12 percent recured return on all of its gold mines. Year Cash Flow --$725,000,000 90,000,000 135,000,000 180,000,000 245,000,000 232,000,000 170,000,000 120,000,000 95,000,000 -30,000,000 QUESTIONS 1. Construct a spreadshoot to get the payback potlod Infomatrate of rotate of-cougard nel present aloo tha propovod mi 2. Based on your analysis, should the company open the mine? 3. Bory. Most gorgeous up not have yertaha od couro me gak period Whitel van de macumbs to paytrack Porod to a project 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