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Business, 08.04.2021 21:50 hernandezaniyah660

12) You are examining the financial viability of investing in some abandoned copper mines in Chile, which still have significant copper deposits in them. A geologist survey suggests that there might be 10 million pounds of copper in the mines still, and that the cost of opening up the mines will be $3 million (in present value dollars). The capacity output rate is 400,000 pounds a year, and the price of copper is expected to increase 4% a year. The Chilean government is willing to grant a 25-year lease on the mines. The average production cost is expected to be 40 cents a pound, and the current price per pound of copper is 85 cents. The production cost is expected to grow 3% a year, once initiated. The appropriate discount rate for this project is 8%. Would you accept this project? (6 pts)

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12) You are examining the financial viability of investing in some abandoned copper mines in Chile,...
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