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You are considering investing in a new gold mine in South Africa Gold in South Africa is buried very deep, so the mine will require

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You are considering investing in a new gold mine in South Africa Gold in South Africa is buried very deep, so the mine will require an initial investment of $270 million Once this investment is made, the mine is expected to produce revenues of $32 million per year for the next 20 years. It will cost $13 million per year to operate the mine. After 20 years, the gold will be depleted. The mine must then be stated on an ongoing basis, which will cost $4.8 million per year in perpetuity. Calculate the IRR of this investment (Mint Plot the NPV as a function of the discount rate) (Select the best choice below) O A The IRR is about 14% 08. No positive IRR exists since the NPV, calculated as a function of various discount rates, never equals or exceeds zero. OC. The IRR is infinite as a result of the perpetuity D. There are multiple IRRS

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