bullock gold mining payback period excel

bullock gold mining mini case free essays

Bullock Gold Mining The payback period for Bullock Gold Mining in the book does not have a required time period. Usually, a company has a pre-specified length of time as a benchmark. The decision rule is to invest in projects that pay sooner or have a shorter payback period. We calculated the payback period to be 3.96 years which is less than half of the expected duration of the project. To determine 3.96 we added the Present Value of the Cash Flows until we matched the initial investment...

Gold Mining: Why it should be banned in the Philippines? Gold mining in the Philippines can be traced hundreds of years back before the colonizers came to the country. As early as 1521, our ancestors were already panning gold and have decorated themselves with gold accessories. As years passed, the growth of the mining industry has increased. In 1995, Philippine Mining Act was passed which the government allowed foreign companies to fully operate in the country; it created backlash from Filipinos...

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Gold Digging Gold mining is one of the most destructive industries in the world. It can displace communities, hurt workers, destroy environments and contaminate drinking water. Water and land become polluted with mercury and cyanide which endangers ecosystems, animals and people. the health of people and ecosystems. Toxic mine wastecontains many dangerous chemicals including arsenic, cyanide, lead, acids, merry and petroleum byproducts. Mining companies worldwide dump toxic waste into...

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Mini-Case Study: Bethesda Mining Company Week 4 Application 2 Jo-Ann Savoie Walden University Finance: Fiscal Leadership in a Global Environment DDBA-8140-2 Dr. Guerman Kornilov March 24, 2011 The following Mini-Case on Bethesda Mining Company was taken from the text corporate finance (2010, P. 203-204). In order to determine if Bethesda Mine should open, a thorough analysis of the payback period, profitability index, average accounting...

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20122 March 22, 2012 HARMS OF GOLD MINING History of gold is as old as history of humanity. Gold has always been valuable and popular. Since it hardly loses its glitter and it never gets oxidized. However, obtaining gold is not an easy process. People have to use cyanide or some other harmful chemicals to acquire gold. Also after this process very harmful toxic wastes are occurred. Thus gold mining has drastic effects on water, earth and air. Firstly, gold mining can has devastating effect on water...

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Gold Mining Industry Analysis By: Robert 6/6/2010 The Gold Mining Industry has experienced a huge amount of growth since the beginning of the financial crisis. With the price of gold being at $639 in January 2007 before the beginning of the financial crisis and now in June 2010 the price of gold reaching $1220, there is no denying the interest of gold between investors and governments. Investors are seeking ways to protect themselves from inflation and any other type of financial crisis that...

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GOLD MINING AND THE ENVIRONMENT Dirty gold mining has ravaged landscapes, contaminated ecosystems with toxic waste and resulted in widespread water pollution. Cyanide and mercury, two highly toxic substances, have been released freely into the environment as a result of dirty gold mining. TOXIC WASTE Toxic waste is a devastating consequence of dirty gold mining practices.Cyanide heap leachingis the cheapest way to extract gold and as a result, is commonly used around the world. The process...

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Pawan Bhandal 100195140 Case: African Gold, Inc. Ethics and AIDS in the Workplace 1. What aspect of the external environment is African Gold, Inc. confronted with? Give specific details for each one from the case. The three external environmental factors that African Gold was confronted with are: i. The ration of HIV/AIDS related deaths in the mining industry are 24% in comparison to a 19.9% overall in the rest of South Africa. ii. The price of gold has dropped and the South African...

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The purpose of this case analysis is to describe the communication problem and the resulting symptoms that are occurring with Barrick Gold Mine Company happening at the peak of Andes range, the Pascua-Lama development, and the concerns of its stakeholders. As an ending to this case analysis there shall be a solution provided on how the massive gold mine company can solve the disputes with its stakeholder groups. The main communication problem that Barrick is facing is caused by...

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Bullock Gold Mining Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the companys geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan had taken an estimate of the gold deposits to Alma Garrett, the companys financial officer. Alma has also been asked by Seth to perform an analysis of the new mine and present...

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corporate finance minicase: bullock gold mining, chapter 9 | muhammad syarif

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the companys geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined.

Dan has taken an estimate of the gold deposits to Alma Garrett, the companys fi nancial offi cer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Alma has used the estimates provided by Dan to determine he revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $450 million today, and it will have a cash outfl ow of $95 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash fl ows each year from the mine are shown in the table. Bullock Mining has a 12 percent required return on all of its gold mines.

A. Net Present Value (NPV) = 450,000,000 + 63,000,000/(1+0,12)1 + 85.000,000/(1+0,12)2 + 120,000,000/(1+0,12)3 + 145,000,000/(1+0,12)4 + 175,000,000/(1+0,12)5 + 120,000,000/(1+0,12)6 + 95,000,000/(1+0,12)7 + 75,000,000/(1+0,12)8 + -70,000,000/(1+0,12)9 = 56,962,380.80