Hickock Mining is evaluating when to open a gold mine. The mine has 45,900 ounces of gold left that can be mined, and mining operations will produce 5,100 ounces per year. The required return on the gold mine is 11 percent, and it will cost $33.1 million to open the mine. When the mine is opened, the company will sign a contract that will guarantee the price of gold for the remaining life of the mine. If the mine is opened today, each ounce of gold will generate an aftertax cash flow of $1,310 per ounce. If the company waits one year, there is a 65 percent probability that the contract price will generate an aftertax cash flow of $1,510 per ounce and a 35 percent probability that the aftertax cash flow will be $1,210 per ounce. What is the value of the option to wait

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above