Question: Complex engineering Problem Calculate the inflation adjusted discounted cash flow statement for 5 years for a Gold Mining company. The production, unit selling price and

 Complex engineering Problem Calculate the inflation adjusted discounted cash flow statement

Complex engineering Problem Calculate the inflation adjusted discounted cash flow statement for 5 years for a Gold Mining company. The production, unit selling price and expense data is given. Report your answers neatly in excel sheet as table format attached. Assume Salvage Value as zero $. Years Inflation % 2.... Upto 5 0 1 years Production, oz 50,000 75,000 Unit selling price, in $ starting Adjusted for 7% product selling from $1650/oz price increase in each year Operating Revenue, $ Operating expenses, $ Unescalated expense 9500000 16000000 Labour Component: 55%, $ Other component: 45%, $ Escalation factor, labor For labour component of component operating costs: 11% Escalation component, other For other component of component operating costs: 9% Total operating expenses(escalated), $ Operating profit, $ Capital expenditure, $ -30000000 Tax depreciation using straight line method in $ Written down value for tax purposes, $ Profit as assessed for tax purposes, $ Income tax payable at rate of 35%, $ Capital equipment:9% Net Income in dollar of the day terms, $ Cash Flow in Dollar of the day terms Inflation correction factor at 10% General inflation rate is 10% Cash flow in constant dollar terms, $ Find the IRR (Using the trial and error or secant method) and NPV of the project Complex engineering Problem Calculate the inflation adjusted discounted cash flow statement for 5 years for a Gold Mining company. The production, unit selling price and expense data is given. Report your answers neatly in excel sheet as table format attached. Assume Salvage Value as zero $. Years Inflation % 2.... Upto 5 0 1 years Production, oz 50,000 75,000 Unit selling price, in $ starting Adjusted for 7% product selling from $1650/oz price increase in each year Operating Revenue, $ Operating expenses, $ Unescalated expense 9500000 16000000 Labour Component: 55%, $ Other component: 45%, $ Escalation factor, labor For labour component of component operating costs: 11% Escalation component, other For other component of component operating costs: 9% Total operating expenses(escalated), $ Operating profit, $ Capital expenditure, $ -30000000 Tax depreciation using straight line method in $ Written down value for tax purposes, $ Profit as assessed for tax purposes, $ Income tax payable at rate of 35%, $ Capital equipment:9% Net Income in dollar of the day terms, $ Cash Flow in Dollar of the day terms Inflation correction factor at 10% General inflation rate is 10% Cash flow in constant dollar terms, $ Find the IRR (Using the trial and error or secant method) and NPV of the project

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