Question: Strip Mining Incorporated can develop a new mine at an initial cost of $13 million. The mine will provide a cash flow of $40 million

Strip Mining Incorporated can develop a new mine at an initial

Strip Mining Incorporated can develop a new mine at an initial cost of $13 million. The mine will provide a cash flow of $40 million in 1 year. The land then must be reclaimed at a cost of $30 million in the second year. What is the project's NPV if the discount rate is 25% ? +$0.1 million +$0.2 million - \$0.2 million - \$0.1 million

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