Question: please do both parts That's the format. Numbers typed may be wrong Case 1. BULLOCK GOLD MINING (End of Chapter 8 Case) (Due Date: April

 please do both parts That's the format. Numbers typed may be

wrong Case 1. BULLOCK GOLD MINING (End of Chapter 8 Case) (Due

please do both parts

Date: April 5, 2023) Seth Bullock, the owner of Bullock Gold Mining,

That's the format. Numbers typed may be wrong

Case 1. BULLOCK GOLD MINING (End of Chapter 8 Case) (Due Date: April 5, 2023) 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 $622 million today, and it will have a cash outflow of $90 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. 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. 2. Based on your analysis, should the company open the mine? Case 2. Conch Republic Electronics (End of Chapter 9 case) (Due Date: April 5,2023) Note: Use Excel spreadsheet for both cases

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!