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
netineya [11]
3 years ago
8

Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

ompany has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:
Cost of new equipment and timbers $310,000
Working capital required $190,000
Annual net cash receipts $125,000
Cost to construct new roads in year three $58,000
Salvage value of equipment in four years $83,000
Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 20%.
Required:
A. Determine the net present value of the proposed mining project.
B. Should the project be accepted?
1. Yes.
2. No.
Business
1 answer:
geniusboy [140]3 years ago
7 0

Answer:

NPV = -$78,318

Explanation:

cash flow 0 = -$310,000 - $190,000 = -$500,000

cash flow 1 = $125,000

cash flow 2 = $125,000

cash flow 3 = $125,000 - $58,000 = $67,000

cash flow 4 = $125,000 + $83,000 + $190,000 = $398,000

NPV = -$500,000 + $125,000/1.2 + $125,000/1.2² + $67,000/1.2³ + $398,000/1.2⁴ = -$78,318

You might be interested in
Purely domestic firms will be at a disadvantage to mnes in the event of market disequilibria because
Amanda [17]

Purely domestic firms will be at a disadvantage to men's in the event of market disequilibria because domestic firms lack comparative data from its own sources.

<h3>What are domestic firms?</h3>

Most or all of the operations of domestic companies are conducted within the US. They might export goods or import supplies, but these activities often make up a modest portion of overall corporate activity. US securities regulations primarily apply to domestic enterprises. Typically, their financial reports are created using widely accepted accounting principles (GAAP).

To know more about domestic firms visit:

brainly.com/question/13770538

#SPJ4

8 0
1 year ago
What most likely will happen if the pie maker continues to make additional pies? the marginal costs will continue to rise, incre
Over [174]
<span>The most probable thing that will happen if the pie maker keeps making additional pies is this: the marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit. This is to assume that no buyer is interested in purchasing the pies at a certain period of time. </span>
4 0
3 years ago
Read 2 more answers
The factor-price equalization theory and transportation costs Which of the following statements about the factor-price equalizat
abruzzese [7]

Answer:

B and C

Explanation:

The correct statements about the factor-price equalization and the effects of transportation costs are:

  1. Free trade, in the absence of transportation costs or other barriers to trade, tends to equalize product prices and factor prices.
  2. Transportation costs prevent product prices from equalizing.
6 0
3 years ago
Kenya is reserving a room in a hotel in France where they use euros (€). The room charge is €75. Suppose the conversion rate is
irakobra [83]
The cost of the room in dollars is obtained by multiplying the given value with the conversion. This is shown below,
                                   (€ 75) x ($1.298 / <span>€1)
The numerical value of the operation above is $97.35. Therefore, the answer is letter C. $97.35. </span>
5 0
3 years ago
_________ is the elapsed time from receipt of a customer order to when the completed goods are shipped to the customer.
Leno4ka [110]

The period of time between receiving a client order and shipping the finished items to the customer is referred to as the delivery cycle time.

When it comes to measuring internal business performance, delivery cycle time is regarded as a very crucial statistic. It is defined as the period of time between the moment an order is received and the time it is actually sent.

This usually plays a significant role for both organizations and customers because prompt order processing is a skill that almost all firms and customers tend to value.

In a similar vein, it can be seen that quicker delivery cycles can also serve as a possible competitive advantage for the business and, in most situations, are essential to their existence.

To know more about delivery cycle time.

brainly.com/question/24321175

#SPJ4

4 0
2 years ago
Other questions:
  • ___competition is a competitive advantage based on factors other than price.
    12·1 answer
  • Autumn, a manager for Shine Cosmetics, has just been given a report showing sales in her region are lower than anticipated for t
    13·1 answer
  • Typically, most network television advertising time is sold as
    9·1 answer
  • DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at compe
    15·1 answer
  • What might happen to a product when supply is low? A. The price will go up. B. The price will go down. C. The price will stay th
    12·1 answer
  • TB MC Qu. 4-44 Privott, Inc., manufactures ... Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. Th
    11·1 answer
  • The following transactions are July activities of Bennett’s Bowling, Inc. Bennett’s collected $13,100 from customers for games p
    7·1 answer
  • How can questionnaires be distributed to potential respondents?
    11·1 answer
  • Using ________, measurements such as testing assumptions about the business, attributes the customers like, and retention rates
    5·1 answer
  • Prepare a dialogue on the topic Possibitics of Rural Tourism in Nepal "​
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!