Preliminary estimates forecasted an EBITDA of $120 million a year once a mill was in operation. However, significant investment was required. The cost of building the mill was between $60 and $100 million. Additional funds of approximately $10 million were needed to cover startup costs. In calculating a value for the mine, investors assumed a depreciation life of 10 years and a standard corporate tax rate of 35%.

Given the estimated EBITDA and investment needs what rate of return could this investment earn? Should Investors be interested?