what is b?
what's b?
what is b? I completed the blurry question but need help with this one
Score P8-38 (similar to) w Score NON NO 25.0 Stwort T m 1) 20) - - 5 of complete P 8-21 (similar to) You own acomining company and are considering opening a new mine. The mine will cost $117.7 million to open this money is spent mediately, the mine generale $20 million to the next 10 years. Ater that the colle standards. The deaning and maintenance are expected to cost $1.7 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity the cost of capital 848 what does the NPV nay? Use the graph below to determine the Rain the problem NPV of the investment in the Coal Mine 16 Discutate What do the say about whether you should not this apportunity (Select the best chollow Accept the only because the IRR is greater than the cost of capital The 10.30%, the opportunity c. There are twRRA.. you cannot use the IRR as criterion for compting the opportunity Reject the county because the lower than the 0.4% cost of capital The Voir the cent of capitalen (Round to the complace) You own a coal mining company and are considering opening a new mine. The mine will cost $116.2 million to open. If this money is spent immediately, the mine will generate $21.1 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $1.9 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity? If the cost of capital is 8.2%, what does the NPV rule say? Use the graph below to determine the IRR(s) in the problem. NPV of the Investment Q in the Coal Mine os TB- NPV (5 millions) Discount Rate(%) What does the IRR rule say about whether you should accept this opportunity? (Select the best choice below.) O A. The IRR is r- 11.48%, so accept the opportunity OB. Reject the opportunity because the IRR is lower than the 8.2% cost of capital There are two IRRs, so you cannot use the IRR as a criterion for accepting the opportunity OD. Accept the opportunity because the IRR is greater than the cost of capital The NPV using the cost of capital of 8.2% is million (Round to three decimal places.) You own a coal mining company and are considering opening a new mine. The mine will cost $116.2 million to open. If this money is spent immediately, the mine will generate $21.1 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $1.9 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity? If the cost of capital is 8.2%, what does the NPV rule say? Use the graph below to determine the IRR(s) in the problem. NPV of the Investment Q in the Coal Mine os TB- NPV (5 millions) Discount Rate(%) What does the IRR rule say about whether you should accept this opportunity? (Select the best choice below.) O A. The IRR is r- 11.48%, so accept the opportunity OB. Reject the opportunity because the IRR is lower than the 8.2% cost of capital There are two IRRs, so you cannot use the IRR as a criterion for accepting the opportunity OD. Accept the opportunity because the IRR is greater than the cost of capital The NPV using the cost of capital of 8.2% is million (Round to three decimal places.)
