Use the Following Information to Answer the Question(s)below

question 28

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metals is considering opening a strip-mining operation to provide some of the raw materials needed in producing Rearden metal.The initial purchase of the land and the associated costs of opening up mining operations will cost $100 million today.The mine is expected to generate $16 million worth of ore per year for the next 12 years.At the end of the 12th year Rearden will need to spend $20 million to restore the land to its original pristine nature appearance.
-One of the IRRs for Rearden's mining operation is closest to:

• A)0%.
• B)10.6%.
• C)12.4%.
• D)72.0%.

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Definitions:

Office Supplies

Consumable items such as pens, paper, staplers, and other materials that are used in an office setting for daily operations.

Ledger

A ledger is a principal book or computer file for recording and totaling economic transactions by account, separated into debits and credits.

Transaction

An agreement or exchange between parties that involves the transfer of goods, services, or funds.

Account Balance

The total amount of money in a financial account, calculated by adding all deposits and subtracting all withdrawals.