A Coal Mine Extracts 100 000 Tons of Coal Annually

question 36

Essay

A coal mine extracts 100 000 tons of coal annually using mining equipment that costs $10 million. Operating and maintenance costs are $3 million per year. Define the break-even price of coal over planning horizon of six years under a 8% annual interest rate if the equipment's salvage value is $200 000.

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Definitions:

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