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statuscvo [17]
3 years ago
11

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota, Dan Dority, the company’s geologi

st, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Garrett, the company’s financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendations an whether the company should open the new mine.
Year Cash Flow

0 -$650,000,000
1 80,000,000
2 121,000,000
3 162,000,000
4 221,000,000
5 210,000,000
6 154,000,000
7 108,000,000
8 86,000,000
9 -72,000,000

Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost S650 million today, and it will have a cash outflow of S72 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table on this page. Bullock Gold Mining has a 12 percent required return on all of its gold mines.

Required:
Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.
Business
1 answer:
boyakko [2]3 years ago
4 0

Answer:

NPV is $28.5 million

Payback is 4.31 years

IRR is 13.25%

MIRR is 12.51%

Explanation:

The NPV,payback period,Internal rate of return and modified internal rate of return were computed in the attached spreadsheet.

Payback period=the year of the first positive cumulative cash flow+the year cumulative cash flow/the next year cash flow

the year of first positive cumulative flow is year 4

the cumulative cash flow for year 4 is $66 m

the next year cash flow is(year 5) is $210

payback=4.31

Download xlsx
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3 years ago
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erastovalidia [21]

Answer:

Explanation:

The preparation of ta static budget report for the second quarter is shown below:

                                          CROIX COMPANY

                                         Sales Budget Report

                             For the Quarter Ended June 30, 2017

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Product Line  Budget  Actual  Difference  Budget  Actual  Difference

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3 years ago
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Joe was performing a job analysis

Explanation:

Job analyzes are a set of protocols for defining the contents for the job and the features or criteria required for the execution of the tasks. Job analytics provide employers with knowledge that helps to recognize which personnel is ideally suited to particular work.

An example of a job analysis model might list tasks or activities of the job and determine each performance level. Within this way, the role of job analysis is critical. Many companies typically take the same generic approach without details on the task description. All workers are tested in a similar set of features or characteristics presuming that they are required for all work.

6 0
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Answer:

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In this case,  the cost of opportunity is the  benefit that could have been received at the street festival,  because that is the option you leave behind.

Earning a high score on your midterm is the product of your decision

5 0
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