I have additional questions for the Big Mining problem that were not included in the original problem submitted and answered,

1. Big Hole Mining Company (BH) has had most of its strip mining on hold for several years due to public opposition.While it's difficult to accurately assess public opinion, management now believes reclaiming regulations and new technology have significantly reduced potential opposition, and that a new mine can be opened.They have asked you to do the following: A.Evaluate the project financials using the 15% BH standard corporate hurdle rate and the following assumptions: The mine would be on land bought 10 years ago for $6,000,000, but a recent appraisal valued the property at $3,400,000 after taxes. The sales contract for this mine runs for 4 years at which time the site will be entirely mined. The contract calls for the following tons at a fixed price of $35.00 per ton. YearTons (000) 2640 1. Big Hole Mining Company (BH) has had most of its strip mining on hold for several years due to public opposition.While it's difficult to accurately assess public opinion, management now believes reclaiming regulations and new technology have significantly reduced potential opposition, and that a new mine can be opened.They have asked you to do the following: A.Evaluate the project financials using the 15% BH standard corporate hurdle rate and the following assumptions: The mine would be on land bought 10 years ago for $6,000,000, but a recent appraisal valued the property at $3,400,000 after taxes. The sales contract for this mine runs for 4 years at which time the site will be entirely mined. The contract calls for the following tons at a fixed price of $35.00 per ton. YearTons (000) 2640 3726 4811 5743