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Mining Company is considering investing in a new mining project.

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Mining Company is considering investing in a new mining project. The firm's cost of capital is 12 percent and the project is expected to have an initial after tax cost of $5,000,000. Furthermore, the project is expected to provide after-tax operating cash flows of $2,500,000 in year 1, $2,300,000 in year 2, $2,200,000 in year 3 and ($1,300,000) in year 4?;(a) Calculate the project's NPV.;(b) Calculate the project's IRR.;(c) Should the firm make the investment?;Additional Requirements;Level of Detail: Show all work

 

Paper#25435 | Written in 18-Jul-2015

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