1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
krok68 [10]
3 years ago
15

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 $3,200,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $425,000 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 $480,000 at the end of Year 11.
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).)
Business
1 answer:
Alik [6]3 years ago
6 0

Answer:

IRR = 13.05%

Explanation:

using an excel spreadsheet, the cash flows are:

year 0 = -$3,200,000

year 1 = $425,000

year 2 = $425,000 x 1.08 = $459,000

year 3 = $459,000  x 1.08 = $495,720

year 4 = $535,378

year 5 = $578,208

year 6 = $624,464

year 7 = $674,422

year 8 = $728,375

year 9 = $786,645

year 10 = $849,577

year 11 = ($849,577  x 1.08) - $480,000 = $917,543 - $480,000 = $437,543  

IRR = 13.05%

The internal rate of return (IRR) is the discount rate at which a project's NPV (net present value) would equal $0.

You might be interested in
PlZ HELP!!!
Luden [163]

Answer:

B.  telemarketing

Explanation:

In the telemarketing, the company or an individual is directly in contact with its customer with respect to the product over the phone call so that they could aware of the product

In this, the face to face interaction is not done

Therefore as per the given situation, the option B is correct as in this met the criteria.

5 0
3 years ago
Read 2 more answers
Notes or accounts receivables that result from sales transactions are often called A. non-trade receivables.B. trade receivables
oksian1 [2.3K]

Answer:

B. trade receivables

Explanation:

Trade receivables are amounts billed by a company to its clients when it delivers goods or services to them in the ordinary course of business, not been collected at the sale moment, but in the future. This may or may not include interest.

Instead, non-trade receivables are amounts owed to the company that falls outside of the normal course of business, such as employee advances or insurance reimbursements.

7 0
3 years ago
Written communications fall into two categories: paper-based and electronic. Which of the following are paper-based messages? Ch
Harman [31]

Answer:

The correct answer is letter "B" and "C": Business letters; Interoffice memos.

Explanation:

Paper-based communications are means of transmitting information presented on paper. It is implemented in formal cases where there must be written support of a proposal or notification about the course of actions that will be taken in front of a claim case or problem, for instance. <em>Business letters </em>and<em> interoffice memos </em>fall under this category.

Electronic communication can be used at the corporate level as well but it has a certain degree of informality. <em>Instant messages</em> or <em>e-mails </em>are used to transmit different kinds of information within a firm.

5 0
3 years ago
Which of the following is an incorrect way to avoid struck-by rolling hazards?
finlep [7]

The answer is: A.Position a worker to signal you when operating a vehicle in reverse gear without audible forward alarm

When operating vehicle in reverse gear, the operator cannot always see whether the worker who gives the signal able to see the moving vehicles or not.

Which is why an audible sound for moving vehicles is needed so the other workers could notify the location of your vehicles and avoid themselves from being crushed.

3 0
3 years ago
Read 2 more answers
Which government body authorized CTSOs
KIM [24]

Answer:

The U.S. Congress authorized CTSOs.

Explanation:

7 0
3 years ago
Read 2 more answers
Other questions:
  • Marina Manufacturing is considering buying new equipment for its factory. The new equipment will reduce variable labor costs but
    12·1 answer
  • Jawbreaker Company paid $640 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $640 and a
    15·1 answer
  • After researching the different forms of business organization, Natalie Koebel decides to operate "Cookie Creations" as a corpor
    15·2 answers
  • A call provision in a bond...A. Limits the actions of the borrower.B. Protects the borrower from unscrupulous practices by the l
    13·1 answer
  • What is another name for intermediaries? Name two types of intermediaries. Name five non-store retailing methods.
    6·1 answer
  • Suppose market demand for a product is given by the equation P = 20 – Q. For this market demand curve, marginal revenue is MR =
    12·1 answer
  • Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air condition
    8·1 answer
  • Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
    10·1 answer
  • Two factors identified and described in relation to a mining company location.
    12·1 answer
  • Performance apraisals of employees
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!