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Mining Engineering · Q32

Mine Economics

Engineering and GATE · Mining Engineering · question 32

Q32

A mining company is considering the following project: Cash Flows (Rs.) for five years Year 0 1 2 3 4 5 Cash flow (Rs.) -50000 +11300 +12769 14428 +16305 +18421 What will be the NPV for the project if the cost of capital is 10%.

A mining company is considering the following project:
Cash Flows (Rs.) for five years
Year 0 1 2 3 4 5
Cash flow (Rs.) -50000 +11300 +12769 14428 +16305 +18421
What will be the NPV for the project if the cost of capital is 10%.
A.
Rs. 4240.12
Answer
B.
Rs. 4554.90
C.
Rs. 4207.12
D.
Rs. 4449.90

Answer: Option A

Solution

Answer: Option A
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