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:

Higher Levels

Often relates to advanced or complex stages or forms of thinking, processing, or functioning.

Empathy

The ability to understand and share the feelings of another person, trying to see things from their perspective.

Chest Expanded

Refers to the increase in chest volume or the act of inflating the lungs by taking a deep breath, often as part of physical exercises or as a measure of lung capacity.

Slight Smile

A subtle and often brief expression of happiness, contentment, or affection, usually indicated by a small upward curve of the corners of the mouth.