Question: first correct answer will get an immediate upvote, closely watching this question Your company is planning to open a new gold mine that will cost
first correct answer will get an immediate upvote, closely watching this question
Your company is planning to open a new gold mine that will cost $1.82 million to build, with the expenditure occurring at the end of the year two years from today. The mine will bring year-end after-tax cash inflows of $1.52 million at the end of the two succeeding years, and then it will cost $0.5 million to close down the mine at the end of the third year of operation. What is this project's IRR? If the cost of capital is 10%, should the project be accepted based on the IRR criterion? 29.21%; yes 31.21%; yes 30.21%: yes 29.21%; no 30.21%; no
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