A coal mine is expected to produce coal for 15 years. Coal production in the first year is estimated at 30,000 tons in the first year and will decrease by a thousand tons annually. The price per tonne of coal is set at $100, while the overall cost of coal mining is estimated to be around $500,000 annually. If the interest rate is 12% per year, what is the total value of the sales of coal for 15 years calculated at this time?

A coal mine is expected to produce coal for 15 years. Coal production in the first year is estimated at 30,000 tons in the first year and will decrease by a thousand tons annually. The price per tonne of coal is set at $100, while the overall cost of coal mining is estimated to be around $500,000 annually. If the interest rate is 12% per year, what is the total value of the sales of coal for 15 years calculated at this time?

Name: (engineering economic) A coal mine is expected to produce coal for 15
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Description: (engineering economic) A coal mine is expected to produce coal for 15 years. Coal production in the first year isestimated at 30,000 tons in the first year and will decrease by a thousand tons annually. Theprice per tonne of coal is set at $100, whil

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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