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lakkis [162]
3 years ago
14

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 $3,400,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $575,000 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 $123,000 at the end of year 11.
Required:
What is the IRR for the gold mine? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
IRR
%
Business
1 answer:
lys-0071 [83]3 years ago
4 0

Answer:

19.07%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-3,400,000

Cash flow in year 1 = $575,000  

Cash flow in year 2 = $575,000 x 1.08  

Cash flow in year 3 =  $575,000 x 1.08^2

Cash flow in year 4 =  $575,000 x 1.08^3

Cash flow in year 5 =  $575,000 x 1.08^4

Cash flow in year 6 =  $575,000 x 1.08^5

Cash flow in year 7 =  $575,000 x 1.08^6

Cash flow in year 8 =  $575,000 x 1.08^7

Cash flow in year 9 =  $575,000 x 1.08^8

Cash flow in year 10 =  $575,000 x 1.08^9

Cash flow in year 11 =  ($575,000 x 1.08^10) - $123,000

IRR = 19.07%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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Answer:

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Their corporate website is: aboutamazon.com/

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Cheers

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kolezko [41]

Answer:

in the settings

Explanation:

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Many popular stores have surveys that you can take after you make a purchase. Many times, you get a coupon for a percentage off, but some surveys get you entered to win gift cards to the store. This is especially helpful if you shop there and if you typically buy living necessities at the store.

While winning is not guaranteed, if you shop there a lot, you may be able to get entered several times, increasing your chances of winning, compared to those who may not shop there a lot or even those who do not choose to take the survey.

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Each activity has a specific point amount and they accumulate until you decide that you want to cash them in. Many of these sites give points for online shopping or signing up for offers, but do not sign up and pay for something that you do not really need, since that defeats the purpose.

5. Get paid to write reviews online.
There are websites, like SliceThePie.com, that pay you for reviewing the latest fashions and music. The longer and better your reviews, the more you get paid.

For example, on SliceThePie, while the maximum is typically nine cents per review, there are certain specials that allow you to get paid more. This usually happens on fashion reviews, but some music is occasionally higher paying.

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