The utah mining corporation is set to open a gold mine near, Ask an Expert

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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 $3,600,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $465,000 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 $520,000 at the end of Year 11.

What is the IRR for the gold mine?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91953679

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