Q MINICASE Bullock Gold Mining Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dako Answered over 90d ago Q Boondock Silver Mining Beth Boondock owner of Boondock Silver Mining is reviewing the details of a new silver mine in
Bullock Gold Mining has a 12 percent required return on all of its gold mines QUESTIONS 1 Construct a spreadsheet to calculate the payback period internal rate of return modified internal rate of return and net present value of the proposed mine 2 Based on your analysis should the company open the mine
Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined
Bullock Gold Mining has a 1 2 percent required return on all of its gold mines QUESTIONS Construct a spreadsheet to calculate the payback period internal rate of return modified internal rate of return and net present value of the proposed mine Based on your analysis should the company open the mine
Question CHAPTER CASE BULLOCK GOLD MINING Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined
Question Mini Case Page 168 Bullock Gold Mining Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined
To calculate the net present value we can use the NPV function in Excel The formula for calculating NPV is given as NPV = sum of the present value of cash flows initial investment NPV of the proposed mine = $15 661 The company should open the mine because the net present value NPV of the proposed mine is positive A positive NPV
Question Bullock Gold Mining Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mind
Net Present Value NPV =∑ Cash Flow 1 Discount Rate Year −Initial Investment NPV=∑ 1 Discount Rate Year Cash Flow In the case of Bullock Gold Mining you would sum up the cash flows over the years until the cumulative cash flow becomes positive or zero The year at which this occurs along with any fraction of the year is the
Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined
BULLOCK GOLD MINING CASE STUDY 2 Brief Introduction Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined Dan
Answer to Bullock Gold Mining Seth Bullock the owner of Bullock Lit Notes Study Guides Documents Q&A Ask AI Chat PDF Log In Sign Up A Based on the above construct a spreadsheet to calculate the Net Present Value modified internal rate of return MIRR the payback period and the disocunted payback period Assume a cut off of
Question Chapter 9 Net Present Value and Other Investment Criteria 311 MINICASE Bullock Gold Mining Seth Bullock the owner of Bullock Gold Mining is evaluat ing a new gold mine in South Dakota Dan Dority the compa ny s geologist
8 70 000 000 9 80 000 000 Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine She has also projected the expenses of opening the mine and the annual operating expenses If the company opens the mine it will cost $500 million today and it will have a cash outflow of $80million nine years
CHAPTER CASE BULLOCK GOLD MINING Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site and net present value of the proposed mine 2 Based on your analysis should the company open the mine Year Cash Flow 0
Question 5 Use the information in Chapter 8 Case of your textbook to calculate the payback IRR NPV Based on your analysis should the company open the mine Chapter 8 Case Study Bullock Gold Mining Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota
Question Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined
Mini Case Study Bullock Gold Mining Seth Bullock the o wner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be more productive for either years after which the gold would be completely mined
Similar Questions Chris Chandler the owner of Chandler Copper Mining is evaluating a new copper mine in Nevada Kim Lee the companys lead geologist has recently completed an analysis of the mine site Kim estimates that the mine would be productive for nine years before the copper reserves are depleted Kim has relayed these estimates to Alex Martinez the companys chief
BULLOCK GOLD MINING Seth Bullock the owner of Bullock Gold Mining is evaluating a new gold mine in South Dakota Dan Dority the company s geologist has just finished his analysis of the mine site He has estimated that the mine would be productive for eight years after which the gold would be completely mined
