Question: I post it before but I want to compare so plis i need ALL the process for the 3 problems. Bullock Gold Mining Seth Bullock,

I post it before but I want to compare so plis i need ALL the process for the 3 problems.
I post it before but I want to compare so plis i

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. Year 0 C Ph. -5625.000.000 70.000.000 1 2 129.000.000 3 181.000.000 4 3 235.000.000 210.000.000 164.000.000 6 7 OK 000 000 36,000,000 90,000,000 The expected cashflows of the project are presented in the above table and below is the capital structure of the mine. The mine is in the 25% tax rate. The expected cashflows of the project are presented in the above table and below is the capital structure of the mine. The mine is in the 25% tax rate. Debt Debe 40,000 6.5 percent coupon bonds outstanding 20 years to maturity, selling for 105 of par, the bonds have a $1,000 par value each and make annual payments. 60.000 6.2 percent coupon bonds outstanding, 25 years to maturity, selling for 98 percent of par, the bonds have a $1.000 par value each and make semiannual payments. Common 1.350,000 shares outstanding, sellinor $97 per share the beta i las Preferred stock 90.000 shares of 5.7 percent preferred stock outstanding, per value of $100, selling for $95 per shure: 7 percent expected market risk premium; 3.8 percent rink free rate. Market 1. Calculate the WACC for the mine. 2. Calculate the NPV, IRR, Profitability Index and payback period for the project. 3. Briefly explain for each of the four items in question 2, if the project should be accepted or rejected and why, based on the rule. Assume that the required return of the project Is the cost of capital of the mine and that they require a payback period of 5 years

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