Your Company Is Planning to Open a New Gold Mine

question 79

Multiple Choice

Your company is planning to open a new gold mine which will cost $3.0 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 $2.0 million at the end of the two succeeding years,and then it will cost $0.5 million to close down the mine at the end of the third year of operation.What is this project's IRR?

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

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Definitions:

Hourglass Sequence

A narrative or organizational structure that begins with a broad overview, narrows down to focus on specific details, and then expands again to consider broader implications.

Fire Supervision

It entails the management and strategic oversight of procedures related to preventing, controlling, and extinguishing fires, primarily within organizational or industrial settings.

Fire Prevention

Measures and practices aimed at reducing the risk and severity of fires to protect lives and property.

Emergency Medical Services

Healthcare services provided in response to immediate medical emergencies outside of a hospital.