Question

Your company is planning to open a new gold mine which will cost $3 million to build, with
the expenditure occurring at the end of the year three years from today. The mine will bring year-
end after-tax cash inflows of $2 million at the end of the two succeeding years, and then it will
cost $0.5 million to close down the mine at the end of the third year of operation. What is this

Answer 1

Answer:

The mine will bringyear-end cash inflows of $2 million at the end of the two succeeding years, and then it willcost $0,5 million to close down ...