Your Company Is Planning to Open a New Gold Mine

question 42

Multiple Choice

Your company is planning to open a new gold mine which will cost $3 million to build,with the expenditure occurring at the end of the year three years from today.The mine will bring year-end after-tax cash inflows of $2 million at the end of the two succeeding years,and then it will cost $.5 million to close down the mine at the end of the 3rd year of operation.What is the project's IRR?

• A) 14.36%
• B) 10.17%
• C) 17.42%
• D) 12.70%
• E) 21.53%

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Definitions:

Clarity of Goals

The degree to which organizational or individual objectives are defined, understood, and communicated.

Task-Oriented

Focused on completing specific tasks efficiently and effectively, often prioritizing work over relational concerns.

Technical Information

Detailed data or knowledge in specialized fields, often used to solve specific problems or complete tasks, requiring expertise to understand and apply.

External Dimensions

Variables that influence an organization from the outside, such as economic, political, technological, and sociocultural factors.