A piece of land may be purchased for $753957 to be strip mined for the underlying coal.
The annual net income for the mined coal is expected to be $293128 for 10 years.
At the end of the ten years, the surface of the land must be restored due to federal government regulation. This reclamation will cost $1340431.6.
Using a discount rate of 12.5% calculate the Net Present Value of the Project. Give your answer to two decimal places.
Homework Answers
We see that the Net Present Value of the Project is given as
equal
to=-753957+293128/12.5%*(1-1/1.125^10)-1340431.6/1.125^10=456145.1456
Add Answer to:
A piece of land may be purchased for $753957 to be strip mined
for the underlying...
A piece of land may be bought for $700,000 to be strip-mined for coal. Annual net...
A piece of land may be bought for $700,000 to be strip-mined for coal. Annual net income will be $300,000 a year for 10 years. At the end of the 10 years, the surface of the land will be restored as required by a federal law on strip mining. The reclamation will cost $1,500,000 more than the resale value of the land after it is restored. Using a 10% interest rate compounded quarterly, find the present worth of this project...
Please show ALL EXCEL FORMULAS! BETHESDA MINING COMPANY Bethesda Mining is a midsized coal mining company...
Please show ALL EXCEL FORMULAS!
BETHESDA MINING COMPANY Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market. The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal...
Bethesda Mining is a mid-sized coal mining company with 20 mines located in Ohio, Pennsylvania, West...
Bethesda Mining is a mid-sized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip minds. Most of the coal mined is sold under contract, with excess production sold on the spot market.The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction technologies has led to an...
Bethesda Mining Company please answer neatly and organized, and I will give a thumbs up in...
Bethesda Mining Company please answer neatly and organized, and I will give a thumbs up in return thank you. Please solve NPV and IRR and analyze the case and also answer if Bethesda can go forward with opening the mine. Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess...
BETHESDA MINING COMPANY Bethesda Mining is a midsized coal raining company with 20 mines located in...
BETHESDA MINING COMPANY Bethesda Mining is a midsized coal raining company with 20 mines located in Ohio, Pennsyl- vania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market. The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction...
1. A town’s recreation department is trying to decide how to use a piece of land....
1. A town’s recreation department is trying to decide how to use a piece of land. One option is to put up basketball courts with an expected life of 8 years. Another option is to install a swimming pool with an expected life of 24 years. The basketball courts would cost $180,000 to construct, and yield net benefits of $40,000 at the end of each of the 8 years. The swimming pool would cost $2.25 million to construct, and yield...
Use Scenario 1 to answer questions 1A, 1B, and 1C below (2 - 4). Scenario 1: Newmont Mining Company is considering inves...
Use Scenario 1 to answer questions 1A, 1B, and 1C below (2 - 4). Scenario 1: Newmont Mining Company is considering investing in a piece of land that may be purchased for $610,000 (today) to be open pit-mined for copper for the next 10 years. The mine is expected to produce income of $200,000 at the end of each year for 10 years. At the end of 10 years, the land will be restored in line with federal law requirements...
A town’s recreation department is trying to decide how to use a piece of land. One...
A town’s recreation department is trying to decide how to use a piece of land. One option is to put up basketball courts with an expected life of eight years. Another is to install a swimming pool with an expected life of 24 years. The basketball courts would cost $180,000 to construct and yield net benefits of $40,000 at the end of each of the eight years. The swimming pool would cost $2.25 million to construct and yield net benefits...
Windhoek Mines, Ltd, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to...
Windhoek Mines, Ltd, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company 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 Working capital required Annual net cash receipts Cost to construct new roads in year three Salvage value of equipment in...
Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp,...
Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp, Coolplay would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12–18. Property values in southern California have enjoyed...
Please show ALL EXCEL FORMULAS!
BETHESDA MINING COMPANY Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market. The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal...
BETHESDA MINING COMPANY Bethesda Mining is a midsized coal raining company with 20 mines located in Ohio, Pennsyl- vania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market. The coal mining industry, especially high-sulfur coal operations such as Bethesda, has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction...
Windhoek Mines, Ltd, of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company 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 Working capital required Annual net cash receipts Cost to construct new roads in year three Salvage value of equipment in...
Most questions answered within 3 hours.
-
Enter your answer in the provided box. To what fraction of its
original volume, Vfinal/Vinitial, must...
asked 23 minutes ago -
Can you figure out if any R functions used to subset a time
series 1 or...
asked 48 minutes ago -
Which of the following is correct?
A. APC + MPS = 1
B. APS + MPS...
asked 59 minutes ago -
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 2 hours ago -
Compare and contrast the linear motion and angular motion
equations F ma and . That is,...
asked 1 hour ago -
Now that this course has taken you on a journey of introduction
to the world of...
asked 2 hours ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 4 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 4 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 6 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 5 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 5 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 6 hours ago