Question
The Yufi mining corporate is set to open a gold mine in mansa. According to the evaluation made this this far, the mine will cost
The Yufi mining corporate is set to open a gold mine in mansa. According to the evaluation made this this far, the mine will cost k900,000 to open and have an economic life of 11 years .it will generate a cash inflow of 175,000 at the end of the first year and the cash inflow are projected to grow at 8%per year for the next 10 years. it is projected that the mine will be abandoned in the 11 th year. Abandoned costs are expected to be 125,000 at end of year 11. The required return for the investment is 10%. Using the internal rate of return IRR should the mine be opened ?
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