Dr. Ron Patterson, the owner of Chadron Gold Mining, is evaluating a new gold mine in Colorado. Dr. Tawny Tibbits, the company's geologist, has just finished her analysis of the mine site. She has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Tawny has taken an estimate of the gold deposits to Dr. Pil Joon Kim, the company's financial officer. Pil Joon has been asked by Ron to perform an analysis of the new mine and present his recommendation on whether the company should open the new mine. Year Cash Flow 0 1 2 -$650,000,000 80,000,000 121,000,000 3 162,000,000 4 221,000,000 5 210,000,000 6 154,000,000 7 108,000,000 8 9 86,000,000 -72,000,000 Pil Joon has used the estimates provided by Tawny to determine the revenues that could be expected from the mine. He has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $650 million today, and it will have a cash outflow $72 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table above. Chadron Gold Mining has a 12 percent required return on all of its gold mines. Questions: 1. Show the detailed calculation process and results for the payback method, 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? Please explain in detail.

I need this in Excel Worksheet to show formulas and calculations please. 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 has taken an estimate of the gold deposits to Alma Garrett, the company’s financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Year    Cash Flow0    −$625,000,0001          70,000,0002        129,000,0003        183,000,0004        235,000,0005        210,000,0006        164,000,0007        108,000,0008          86,000,0009       −   90,000,000   Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She also has projected the expense of opening the mine…

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. Dan has taken an estimate of the gold deposits to Alma ­Garrett, the company’s financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $745 million today, and it will have a cash outflow of $55 ­million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows…

Mike Mulligan wants to expand his heavy equipment business into excavation. He plans to buy a used excavator for $300,000. The excavator requires an inventory of spare parts worth $ 10,000. These investments will occur immediately. Mulligan will operate the excavation business for two years and expects EBITDA of $200,000 at the end of each year. He will close his business at the end of the second year, sell the equipment for $100,000 and liquidate the inventory of spare parts. Mulligan pays a tax rate of 25%. Using this information, compute the appropriate values for operating cash flow, investments in net working capital, CAPEX and free cash flow for each year of the project.

You own a coal mining company and are considering opening a new mine. The mine will cost $117.1 million to open. If this money is spent immediately, the mine will generate $21.5 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $1.9 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity? If the cost of capital is 8.1%, what does the NPV rule say? Use the graph below to determine the IRR(s) in the problem. NPV ($ millions) 31- 21- NPV of the Investment in the Coal Mine 5 10 15 20 Discount Rate (%) What does the IRR rule say about whether you should accept this opportunity? (Select the best choice below.) A. Accept the opportunity because the IRR is greater than the cost of capital. O B. The IRR is r= 11.83%, so accept the opportunity. O C. Reject the opportunity because the IRR is lower than the 8.1%…