Boston Mining is set to open a gold mine. The mine will cost $7,000,000 to open and will have an economic life of 6 years. Annual expenses are estimated to be $800,000. It is expected to generate $2,500,000 in revenue for the next 6 years. After 6 years, the mine will be abandoned. Boston Mining expects to incur clean-up costs of $1,000,000 at the end of year 6 to restore the mining site back to the original condition as a parking lot for transportation trucks. The parking lot is estimated with a salvage value of $500,000. Assume revenue occurs at the end of each year and expenses occur at the beginning of each year. What is the final cash flow at the end of the project C06?

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Mine cost to open 7000000 incurred at t0 Annual operating expenses 800000 ... View the full answer