An iron ore of 50x10^6 ton was produced during 15 years and has been sold for $100 per ton Estimate the required investment if 0.4 turnover ratio was considered. If produced ton costs $28, what would be the net present value of the project when 8% safe rate and 15% rate of return assuming that the Investment will be depreciated within 15 years?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
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An iron ore of 50x10^6 ton was produced during 15 years and has been sold for $100 per ton Estimate the required investment if 0.4 turnover ratio was considered. If produced ton costs $28, what would be the net present value of the project when 8% safe rate and 15% rate of return assuming that the Investment will be depreciated within 15 years?

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