{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T15:02:07-04:00", "answer_date": "2024-06-09 15:02:07", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2520743", "url": "\/study-help\/questions\/the-utah-mining-corporation-is-set-to-open-a-gold-2520743", "question_creation_date_js": "2024-06-09T15:02:07-04:00", "question_creation_date": "Jun 09, 2024 03:02 PM", "meta_title": "[Solved] The Utah Mining Corporation is set to ope | SolutionInn", "meta_description": "Answer of - The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, | SolutionInn", "meta_keywords": "utah,mining,corporation,set,open,gold,provo,treasurer,monty,goldstein,golden,opportunity", "question_title_h1": "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.", "question_title": "The Utah Mining Corporation is set to open a gold mine near", "question_title_for_js_snippet": "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 $3,500,000 to open and will have an economic life of 11 years It will generate a cash inflow of $455,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years After 11 years, the mine will be abandoned Abandonment costs will be $510,000 at the end of Year 11 a What is the IRR for the gold mine (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places (e g , 32 16) ) IRR b The Utah Mining Corporation requires a return of 9 percent on such undertakings Should the mine be opened Yes No", "question_description": "

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 $3,500,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $455,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $510,000 at the end of Year 11.<\/p> <\/td><\/tr><\/tbody><\/table>

<\/p>
a.<\/td>

What is the IRR for the gold mine?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)<\/p> <\/td> <\/tr><\/tbody><\/table>

<\/p>
IRR<\/td> % <\/td> <\/tr><\/tbody><\/table>

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b.<\/td>

The Utah Mining Corporation requires a return of 9 percent on such undertakings. Should the mine be opened?<\/p> <\/td> <\/tr>

<\/td> <\/td> <\/tr>
<\/td>
Yes<\/td><\/tr>

No<\/p><\/td><\/tr> <\/tbody><\/table> <\/td> <\/tr> <\/tbody><\/table>", "transcribed_text": "", "related_book": { "title": "Financial Accounting", "isbn": "1118334329, 978-1118334324", "edition": "9th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/64b933c63095c_277.jpg", "uri": "\/textbooks\/financial-accounting-9th-edition-277", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8506783459", "uri": "\/textbooks\/10-column-ledger-1st-edition-979-8506783459-109883", "name": "10 Column Ledger", "edition": "1st Edition" }, "question_posted": "2024-06-09 15:02:07", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/define-current-assets-what-basis-is-used-for-arranging-individual", "description": "Define current assets. 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