Business, 12.09.2021 07:50 jambunny26

You are considering investing in a new gold mine in South Africa. Gold in South Africa is buried very deep, so the mine will require an initial investment of 270 million. Once this investment is made, the mine is expected to produce revenues of 25 million per year for the next 20 years. It will cost 11 million per year to operate the mine. After 20 years, the gold will be depleted. The mine must then be stabilized on an ongoing basis, which will cost 5.1 million per year in perpetuity. Calculate the IRR of this investment.

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You are considering investing in a new gold mine in South Africa. Gold in South Africa is buried ver...