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The Solo Company has obtained the rights to the Sulfer mines on the Endor Planet for $ 5 . 6 million dollars. Solo can extract
The Solo Company has obtained the rights to the Sulfer mines on the Endor Planet for $ million dollars. Solo can extract sulfer from the mine for years and then must restore Endor to its original state. Chewy, Solo's accountant has estimated that it will cost Solo $ with a probability, $ with a probability or $ with a probability to restore Endor after the five years. Because of its great credit rating, Solo can borrow at
Solo expects to extract million tons of sulfer from the Endor mine.
Required:
determine Solo's initial cost of the Sulfer Mine
In year Solo extracts tons of Sulfer which it sells for $ what is
a the cost per ton of sulfer? b the profit Solo shows in year from Sulfer mining? c the book value of the sulfer mine at the end of year
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