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:

Employee

An individual who is hired by an employer to perform a specific job or task and is paid a wage or salary in return.

Quit

To leave or discontinue a process, job, or action.

At-Will Employee

An employment arrangement where either the employer or the employee can terminate the employment relationship at any time and for any reason, except an illegal one.

Contract

A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.