Chapter Case Study Bullock Gold Mining

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    If the company opens the mine, it will cost $625 million today, and it will have a cash outflow of $90 million nine years from today in costs associated with closing the mine and

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    This case study, found on page 170 of your course text, deals with the process of determining future yields for a new gold mine. After reading the case study: • Respond to

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

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    Page 274 CHAPTER CASE BULLOCK GOLD MINING eth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's 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.

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    The expected cash flows each year from the mine are shown in the nearby table. Bullock Gold Mining has a 12 percent required re turn on all of its gold mines, Year Cash Flow mwflmthMfio —$625,000,000 10,000,000 1 29,000,000 1 33,000,000 235,000,000 2 1 0.000 . 0 00 164.000.000 108,000,000 86,000,000 — 90.000.000 QUESTIONS 1.

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    The expected cash flows each year from the mine are shown in the nearby table. Bullock Gold Mining has a 12 percent required re turn on all of its gold mines, Year Cash Flow mwflmthMfio —$625,000,000 10,000,000 1 29,000,000 1 33,000,000 235,000,000 2 1 0.000 . 0 00 164.000.000 108,000,000 86,000,000 — 90.000.000 QUESTIONS 1.

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    Case III Chapter 8 Case, Bullock Gold Mining, page 274 is due this week. CHAPTER CASE 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

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