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Business, 12.09.2021 07:50 jambunny26

You are considering investing in a new gold mine in South Africa. Gold in South Africa is buried very​ deep, so the mine will require an initial investment of 270 million. Once this investment is​ made, the mine is expected to produce revenues of 25 million per year for the next 20 years. It will cost 11 million per year to operate the mine. After 20​ years, the gold will be depleted. The mine must then be stabilized on an ongoing​ basis, which will cost 5.1 million per year in perpetuity. Calculate the IRR of this investment.

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