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The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, This is a golden opportunity.
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, This is a golden opportunity. The mine will cost $ to open and will have an economic life of years. It will generate a cash inflow of $ at the end of the first year, and the cash inflows are projected to grow at percent per year for the next years. After years, the mine will be abandoned. Abandonment costs will be $ at the end of Year
a
What is the IRR for the gold mine? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b
The Utah Mining Corporation requires a return of percent on such projects. Should the mine be opened?
multiple choice
Yes
No
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