Question: One method for developing a mine containing an estimated 100,000 tons of ore will result in the recovery of 62% of the available ore deposit

One method for developing a mine containing an estimated 100,000 tons of ore will result in the recovery of 62% of the available ore deposit and will cost $23 per ton of material removed. A second method of development will recover only 50% of the ore deposit, but it will cost only $15 per ton of material removed. Subsequent processing of the removed ore recovers 300 pounds of metal from each ton of processed ore and costs $40 per ton of ore processed. The recovered metal can be sold for $0.80 per pound. Which method for developing the mine should be used if your objective is to maximize total profit from the mine?

Step by Step Solution

★★★★★

3.38 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Assumptions You can sell all the metal that is recovered Method 1 Rec... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

929-B-F-R-A (511).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Both Matos Company and Stubee Corporation use predetermined overhead rates for product costing, inventory valuation, and sales quotations. The two businesses are about the same size, and they compete...

Thomas-Britt Industries was founded by Matt Thomas in 1950 as a small machine shop that produced parts for the aircraft industry. The Korean War brought rapid growth to Thomas-Britt. By the end of...

Sasol Limited is considering one method for developing a mine containing an estimated 100,000 tons of iron ore. This method will result in the recovery of 62% of the available ore deposit and will...

Please refer to the question and to the reference. Please show the step-by-step solution in a clear format thanks. Analyse and solve the following problems. 1. Two alternative designs are under...

2-42. One method for developing a mine containing an estimated 100,000 tons of ore will result in the recovery of 62% of the available ore deposit and will cost $23 per ton of material removed. A...

One method for developing a mine containing an estimated 100,000 tons of ore will result in the recovery of 62% of the available ore deposit and will cost $23 per ton of material removed. A second...

42. One method for developing a mine containing an estimated 100,000 tons of ore will result in the recovery of 62% of the available ore deposit and will cost $23 per ton of material removed. A...

In a scattering experiment, an alpha particle A is projected with the velocity u0 = ?(600 m/s)i + (750 m/s)j ? (800m/s)k into a stream of oxygen nuclei with a common velocity v0 = (600 m/s)j . After...

The TechEdge Corporation offers two forms of 4-year service contracts on its closed-loop water purification system used in the manufacture of semiconductor packages for microwave and high-speed...

5.112 One question asked was as follows: The term affirmative action has different meanings to different people. Please tell me which statement best describes what you mean by the term: First,...

The graph at the top of the next page illustrates the average total cost curves for two automobile manufacturing firms: Little Auto and Big Auto. Under which of the following conditions would you...

Indicate whether each of the following statements is true (T) or false (F).(all sections) a. Interest is money paid for the use of equity capital. b. (A/F, i%, N) = (A/P, i%, N) + i. c. Simple...

The amount of $7,000 is invested in a Certificate of Deposit (CD) and will be worth $16,000 in nine years. What is the continuously compounded nominal (annual) interest rate for this CD?

What is the present equivalent of a uniform series of annual payments of $3,500 each for five years if the interest rate, compounded continuously, is 10%?

What is the standard deviation of a random variable q with the following probability distribution: (Do not round intermediate calculations. Enter your answer in numbers not in percentage. Round your...

A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 1 2 3 4 5 Project A -$18,000 $6,000 $6,000 $6,000...

What is the price of a bond with a coupon rate of 6 % , payable semi - annually, a face value of $ 1 0 0 0 , 1 2 years to maturity, and a yield to maturity of 6 . 8 % ? Enter your response below....