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 (Don't use the $ sign in your answer)
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Cell reference -
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A piece of land may be bought for $700,000 to be strip-mined for coal. Annual net...
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.
A...
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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...
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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...