Question: Hi Leehoon, do you have time this weekend to work on this assignment before this Sunday 5pm? I have attached the questions and the Excel

Hi Leehoon, do you have time this weekend to work on this assignment before this Sunday 5pm?

I have attached the questions and the Excel template that goes with the Bullock Case Study Template.

If so what do you suggest as your fee?

Hi Leehoon, do you have time this weekend to work on this

Chapter 4: Discounted Cash Flow ValuationsQuestions and Problems 3 Calculating Present Values and 8 Calculating Rates of Return, and Chapter 5 Net Present Value and Other Investment Rules Mini Case Bullock Gold Mining. 3.) Calculating Present Values Present Value For each of the following, compute the present value: Years 6 9 18 23 Interest Rate 7% 15 11 18 Future Value $13,827 43,852 725,380 590,710 8.) Calculating Rates of Return Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2010, Deutscher-Menzies sold Arkies under the Shower, a painting by renowned Australian painter Brett Whiteley, at auction for a price of $1,000,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,680,000. What was his annual rate of return on this painting? Chapter 5 Net Present Value and Other Investment Rules Mini Case 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 $750 million today, and it will have a cash outflow of $75 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 following table. Bullock mining has a 12 percent required return on all of its gold mines. Year Cash Flow 0 -$750,000,000 1 130,000,000 2 180,000,000 3 190,000,000 4 245,000,000 5 205,000,000 6 155,000,000 7 135,000,000 8 95,000,000 9 -75,000,000 1.) Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine. (The Excel sheet is in one of the attachments) 2.) Based on your analysis, should the company open the mine? 3.) Most spreadsheets do not have a built-in formula to calculate the payback period. Write a VBA script that calculates the payback period for a project. Bullock Gold Mining Input area: Year 0 1 2 3 4 5 6 7 8 9 $ Cash flow (750,000,000) Required return Output area: Payback period IRR IRR =IRR(D8:D17) =IRR(D8:D17,-0.99) MIRR =MIRR(D8:D17,D19,D19) Profitability index =NPV(D19,D9:D17)/-D8 NPV =NPV(D19,D9:D17)+D8 8:D17,-0.99) D8:D17,D19,D19) 19,D9:D17)/-D8 19,D9:D17)+D8

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