# A mining company is evaluating when to open a gold mine. The mine has 100,000 ounces of gold left that can be mined and mining operations

###### Question:

A mining company is evaluating when to open a gold mine. The mine has 100,000 ounces of gold left that can be mined and mining operations will produce 10,000 ounces per year. The price of gold from the mine will be guaranteed for the remaining life of the mine through the gold futures contracts. If the mine is opened today, each ounce of gold will generate an after-tax cash flow (= total or net cash flow) of $1,300 per ounce. If the company waits one year, there is a 70 percent probability that the contract price will generate an after-tax cash flow of$1,550 per ounce and a 30 percent probability that the after-tax cash flow will be $1,200 per ounce. The required return on the gold mine is 15 percent and it will cost$30,000,000 to open the mine regardless of whether the mine is open today or in one year. Compute the value of the option to wait today.

### True or false? one of the most common reasons for stopping an exercise training program is injury.

True or false? one of the most common reasons for stopping an exercise training program is injury....

### Que es para usted el desarrollo de la sociedad?

Que es para usted el desarrollo de la sociedad?...

### What was one of the president lincoln’s major frustrations early in the civil war

What was one of the president lincoln’s major frustrations early in the civil war...

### Mass of water 50.003 g 24 95C Temperature of water Specific heat capacity for water 4.184J/g C Mass of metal 3.546 Temperature

Mass of water 50.003 g 24 95C Temperature of water Specific heat capacity for water 4.184J/g C Mass of metal 3.546 Temperature of metal 99.95 Specific heat capacity for metal Finalmente 32 o'c In an experiment to determine the specific heat of a metal student transferred a sample of the metal that w...

### How does word choice affect the mood in’ to man by Edna Saint Vincent Millay

How does word choice affect the mood in’ to man by Edna Saint Vincent Millay...

### Enter the missing numbers in the boxes to complete the table of equivalent ratios.Time (min) Distance (km)? 66 1824 ?15 ?

Enter the missing numbers in the boxes to complete the table of equivalent ratios. Time (min) Distance (km) ? 6 6 18 24 ? 15 ?...

### Yasin preforms the elementary row operation represented by R2 - 1/2R1 on matrix A.Please help! :)

Yasin preforms the elementary row operation represented by R2 - 1/2R1 on matrix A. Please help! :) $Yasin preforms the elementary row operation represented by R2 - 1/2R1 on matrix A. Please help! :$...

### What is the average acceleration of a jet ski that goes from rest to 10 m/s west in 4 s? take the direction

What is the average acceleration of a jet ski that goes from rest to 10 m/s west in 4 s? take the direction west to be positive, and east to be negative. a. 2.5 m/s2 b. -2.5 m/s2 c. 0.4 m/s2 d. -0.4 m/s2...

### 5degrees below 0 32 degrees above 0

5degrees below 0 32 degrees above 0...

### What class are clownfish classified under

What class are clownfish classified under...

### What is not true about the sleep cycle? a person can go through the sleep cycle multiple times in one

What is not true about the sleep cycle? a person can go through the sleep cycle multiple times in one night. the sleep cycle does not repeat itself in order of 1, 2, 3, 4, and rem. deep sleep occurs in the first two stages of sleep. dreams occur during the rem stage....

### The melting of gold is a physical change. why?

The melting of gold is a physical change. why?...

### Who is most responsible for the destruction of millions of tainos

Who is most responsible for the destruction of millions of tainos...

### Discuss how the role of the traditional media in crisis Communications has changed. (DON’T PROVIDE LINK)

Discuss how the role of the traditional media in crisis Communications has changed. (DON’T PROVIDE LINK)...

### NEED HELPP CORRECTT ANSWERS AND WILL GIVE THANKS AND MARK BRAINLIST ONLY FOR CORRECT ANSWER

NEED HELPP CORRECTT ANSWERS AND WILL GIVE THANKS AND MARK BRAINLIST ONLY FOR CORRECT ANSWER $NEED HELPP CORRECTT ANSWERS AND WILL GIVE THANKS AND MARK BRAINLIST ONLY FOR CORRECT ANSWER$...

### What is the y-intercept of function g if g(x) = -4 f(x) + 12'

What is the y-intercept of function g if g(x) = -4 f(x) + 12"...

### Deserts are no place for resources and people must migrate to get theirresources. What are the names of the people who migrate through

Deserts are no place for resources and people must migrate to get their resources. What are the names of the people who migrate through the deserts? Movers Sheiks Nomads Conquistadors...