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Business, 31.05.2021 17:50 Alex4530

Strip mining inc. Can develop a new mine at an initial cost of $5 million. The mine will provide the cash flow of $30 million in 1 year. The land then must be reclaimed at a cost of $28 million in the second year. What are the IRRs of this project? Should the firm develop the mine of the discount rate is 10%? 20%? 350%? 400%?

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Strip mining inc. Can develop a new mine at an initial cost of $5 million. The mine will provide the...
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