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Mining Engineering · Q1

Mine Economics

Engineering and GATE · Mining Engineering · question 1

Q1

A coal mine receives two bids for purchase of a new dragline. The first bid quotes Rs. 150 crore as a price to be paid in full on delivery. The second bid quotes Rs. 180 crore as a price payable at the end of the third year after delivery. If the discount rate is 12%, the difference in NPV between the first and second bids in crore of rupees is

A.
19.68
B.
21.88
Answer
C.
31.88
D.
20.68

Answer: Option B

Solution

Answer: Option B
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