A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be...


A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be as high as $800,000 per year or as low<br>$300,000 per year. The investors' MARR is 8% per year. Answer the following two questions:<br>Click the icon to view the interest and annuity table for discrete compounding when i= 8% per month.<br>More Info<br>1 Calculate the PW based on the optimistic estimate of the net annual revenues.<br>Discrete Compounding; i= 8%<br>ire<br>O A. $3.36 Million<br>Single Payment<br>Compound<br>Amount<br>Uniform Series<br>Compound<br>Amount<br>Factor<br>Sinking<br>Fund<br>Capital<br>Recovery<br>Factor<br>O B. $3.47 Million<br>Present<br>Worth Factor<br>Present<br>Worth Factor<br>O C. $5.37 Million<br>Factor<br>Factor<br>O D. $2.01 Million<br>To Find F<br>To Find P<br>To Find F<br>To Find P<br>To Find A<br>To Find A<br>Given P<br>Given F<br>Given A<br>Given A<br>Given F<br>Given P<br>O E. $3.58 Million<br>F/P<br>PIF<br>FIA<br>PIA<br>A/F<br>A/P<br>1<br>1.0800<br>0.9259<br>1.0000<br>0.9259<br>1.0000<br>1.0800<br>2. Calculate the PW based on the expected net annual revenues calculated using the three-point estimation technique.<br>2<br>1.1664<br>0.8573<br>2.0800<br>1.7833<br>0.4808<br>0.5608<br>0.3080<br>0.2219<br>3<br>1.2597<br>0.7938<br>3.2464<br>2.5771<br>0.3880<br>O A. $5.37 Million<br>4<br>1.3605<br>0.7350<br>4.5061<br>3.3121<br>0.3019<br>5<br>1.4693<br>0.6806<br>5.8666<br>3.9927<br>0.1705<br>0.2505<br>O B. $3.36 Million<br>6.<br>1.5869<br>0.6302<br>7.3359<br>4.6229<br>0.1363<br>0.2163<br>O C. $2.01 Million<br>7<br>1,7138<br>0.5835<br>8.9228<br>5.2064<br>0.1121<br>0.1921<br>O D. $3.58 Million<br>0.5403<br>0.5002<br>8<br>1.8509<br>10.6366<br>5.7466<br>0.0940<br>0.1740<br>0.1601<br>0.1490<br>9<br>1.9990<br>12.4876<br>6.2469<br>0.0801<br>O E. $3.47 Million<br>10<br>2.1589<br>0.4632<br>14.4866<br>6.7101<br>0.0690<br>11<br>2.3316<br>0.4289<br>16.6455<br>7.1390<br>0.0601<br>0.1401<br>12<br>2.5182<br>0.3971<br>18.9771<br>7.5361<br>0.0527<br>0.1327<br>13<br>2.7196<br>0.3677<br>21.4953<br>7.9038<br>0.0465<br>0.1265<br>14<br>2.9372<br>0.3405<br>24.2149<br>8.2442<br>0.0413<br>0.1213<br>15<br>3.1722<br>0.3152<br>27.1521<br>8.5595<br>0.0368<br>0.1168<br>

Extracted text: A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be as high as $800,000 per year or as low $300,000 per year. The investors' MARR is 8% per year. Answer the following two questions: Click the icon to view the interest and annuity table for discrete compounding when i= 8% per month. More Info 1 Calculate the PW based on the optimistic estimate of the net annual revenues. Discrete Compounding; i= 8% ire O A. $3.36 Million Single Payment Compound Amount Uniform Series Compound Amount Factor Sinking Fund Capital Recovery Factor O B. $3.47 Million Present Worth Factor Present Worth Factor O C. $5.37 Million Factor Factor O D. $2.01 Million To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P O E. $3.58 Million F/P PIF FIA PIA A/F A/P 1 1.0800 0.9259 1.0000 0.9259 1.0000 1.0800 2. Calculate the PW based on the expected net annual revenues calculated using the three-point estimation technique. 2 1.1664 0.8573 2.0800 1.7833 0.4808 0.5608 0.3080 0.2219 3 1.2597 0.7938 3.2464 2.5771 0.3880 O A. $5.37 Million 4 1.3605 0.7350 4.5061 3.3121 0.3019 5 1.4693 0.6806 5.8666 3.9927 0.1705 0.2505 O B. $3.36 Million 6. 1.5869 0.6302 7.3359 4.6229 0.1363 0.2163 O C. $2.01 Million 7 1,7138 0.5835 8.9228 5.2064 0.1121 0.1921 O D. $3.58 Million 0.5403 0.5002 8 1.8509 10.6366 5.7466 0.0940 0.1740 0.1601 0.1490 9 1.9990 12.4876 6.2469 0.0801 O E. $3.47 Million 10 2.1589 0.4632 14.4866 6.7101 0.0690 11 2.3316 0.4289 16.6455 7.1390 0.0601 0.1401 12 2.5182 0.3971 18.9771 7.5361 0.0527 0.1327 13 2.7196 0.3677 21.4953 7.9038 0.0465 0.1265 14 2.9372 0.3405 24.2149 8.2442 0.0413 0.1213 15 3.1722 0.3152 27.1521 8.5595 0.0368 0.1168
Jun 03, 2022
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