3-15. It is estimated that a copper mine will pro- duce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per thereafter in each of the following 6 years. year Profit...


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3-15. It is estimated that a copper mine will pro-<br>duce 10,000 tons of ore during the coming year.<br>Production is expected to increase by 5% per<br>thereafter in each of the following 6 years.<br>year<br>Profit per ton will be $12 for years 1-7.<br>a. Draw a cash flow diagram for this copper<br>miņe operation.<br>b. If the company can earn 12% per year on its<br>capital, what is the future equivalent worth<br>of the copper mine's cash flows at the end<br>of year 7?<br>

Extracted text: 3-15. It is estimated that a copper mine will pro- duce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per thereafter in each of the following 6 years. year Profit per ton will be $12 for years 1-7. a. Draw a cash flow diagram for this copper miņe operation. b. If the company can earn 12% per year on its capital, what is the future equivalent worth of the copper mine's cash flows at the end of year 7?

Jun 10, 2022
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