What is the irr for the gold mine

Reference no: EM13263291

The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $911,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $153,000 at the end of the first year, and the cash inflows are projected to grow at 11 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $114,000 at the end of year 11.

What is the IRR for the gold mine?

Reference no: EM13263291

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