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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
IRR
b The Utah Mining Corporation requires a return of percent on such projects. Should
the mine be opened?
Yes
No
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