2 Bethesda Mining Company Abstract Bethesda Mining Company was recently faced with environmental regulations that were difficult to deal with. They were recently offered a contract by Mid-Ohio Electric Company to supply coal for their generator over the next four years since the demand for coal has increased. In order to take this contract and guarantee that they can …
WhatsApp: +86 18221755073Bethesda Mining feels that coal production will be 660,000 tons, 720,000 tons, 760,00 tons, and 620,000 tons, respectively, over the next four years. ... Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine. Should Bethesda Mining take the contract and open the mine? GOODWEEK ...
WhatsApp: +86 18221755073Bethesda Mining feels that coal production will be 660,000 tons, 720,000 tons, 760,000 tons, and 620,000 tons, respectively, over the next four years. ... Calculate the payback period, profitability index, net present value, and …
WhatsApp: +86 18221755073The content provides a comprehensive overview of the payback period in the context of mining ventures.
WhatsApp: +86 18221755073Financial Parameters: Bethesda Mining needs a 12% return on new strip mine projects and is subject to a 25% tax rate. Tax credits arise from losses. Financial Analysis: Payback Period: …
WhatsApp: +86 18221755073BETHESDA MINING. To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. ... Payback period = 3 + $5,685,700/$68,981,300 . …
WhatsApp: +86 18221755073Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, west ia, and Kentucky. the company operates deep mines as well as strip mines. most of the coal mined is sold under contract, with excess production sold on the spot market. ... Calculate the pay back period, profitability index, net present ...
WhatsApp: +86 18221755073Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia, and Kentucky. The company. ... 208520 Bethesda Mining Company: Payback Period, Profitability Index, Net Present Value, IRR, and MIRR Calculate payback period, profitablity index, net present value, ...
WhatsApp: +86 18221755073The profitablity index is larger than1, we should accept the project (d) Payback Period and Discounted Payback Period The pay back period is 3.3542, the discount payback period is 3.9187. We can earn our investment back in four years. We should accept the project
WhatsApp: +86 18221755073BETHESDA MINING COMPANY Mini Cases Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsyl- vania, West ia, and Kentucky. The company operates deep mines as well as strip mines Most of the coal mined is sold under contract, with excess production sold on the spot market.
WhatsApp: +86 18221755073Question: Bethesda Mining CompanyBethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia, and Kentucky. ... Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine. Should Bethesda Mining take the contract and open the mine?
WhatsApp: +86 18221755073Case study 2: Bethesda Mining Company CAPITAL BUDGETING March 13th, 2022 TEAM Huỳnh Ngọc Hân 31201022206 Ngô Ngọc Hân 31201025176 ..., Payback Period, and Profitability Index. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales. Each ...
WhatsApp: +86 18221755073Assume a loss in any year will result in a tax credit. You have been approached by the president of the company with a request to analyze the project. Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine. Should Bethesda Mining take the contract and open the mine? Required: 1.
WhatsApp: +86 18221755073Payback period. The payback period is the number of years it takes to recover the initial investment. In this case, the initial investment is $105 million for the equipment, plus $6.7 million for the land, plus $2.4 million for reclamation, for a total of $114.1 million.
WhatsApp: +86 18221755073BETHESDA MINING. To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. ... Payback period = 3 + $5,685,700/$68,981,300 . Payback period = 3.08 years . Profitability index = ($25,912,500/1.12 ...
WhatsApp: +86 18221755073Calculate the payback period. 2. Calculate the profitability index. 3. Calculate net present value. 4. Calculate the internal rate of return. 5. Should Bethesda Mining take the contract? 1. Calculate the payback period. ... Bethesda Mining feels that coal production will be 750,000 tons, 810,000 tons, 830,000 tons, and 720,000 tons ...
WhatsApp: +86 18221755073View Bethesda Mining - Capital Budgeting Analysis.xlsx from ECONOMICS ECONOMETRI at Quaid-e-Awam University of Engineering, Sciences & Technology, Nawabshah. ... Discounted Payback Period 3.39 Project Recommended Assumptions: The tax rate will remain 38% throughout the project timeline.
WhatsApp: +86 18221755073Question: please complete entire problem and show excel formulas.calculate payback period, profitability index, npv, internal rate of return for the new strip mine. ... Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia, and Kentucky The company operates deep mines as well as strip mines
WhatsApp: +86 18221755073Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia, and Kentucky The company operates deep mines as well as strip …
WhatsApp: +86 18221755073Bethesda Mining should take the contract and open the new strip mine because the project appears to be financially viable, with a positive NPV, a payback period within three years, a PI greater than 1, and an IRR higher than the required return.
WhatsApp: +86 18221755073Bethesda Mining is a midsized coal mining company with 20 mines located in Uhio, Pennsylvanla, West ia and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market. ... Payback period is the total time taken to cover the initial cost of ...
WhatsApp: +86 18221755073Bethesda Mining feels that coal production will be 620,000 tons, 680,000 tons, 730,000 tons, and 590,000 tons, respectively, over the next four years. The excess production will be sold in the spot market at an average of $77 per ton. ... Calculate the payback period, profitability index, net present value, and internal rate of return for the ...
WhatsApp: +86 18221755073ul033 lls issue In his report. BETHESDA MINING COMPANY a Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, Nest ia, and Kentucky. The company operates deep mines as well as …
WhatsApp: +86 18221755073Case: Bethesda Mining (Chapter 6) I have been asked by the President of Bethesda Mining Company to analyze a proposition by Mid-Ohio Electric Company to supply coal for its electric generators for the next four years. This proposition involves opening a new mine in Ohio‚ and making an investment in new equipment of $85‚000‚000‚ with a residual value to be transferred …
WhatsApp: +86 18221755073Finance document from University of Maryland, University College, 4 pages, Bethesda Mining Company Group 3 Purpose: Calculate the project's Payback Period, …
WhatsApp: +86 18221755073Bethesda Mining does not have enough excess capacity at its existing mines to guarantee the contract. The company is considering opening a strip mine in Ohio on 5,000 acres of land …
WhatsApp: +86 18221755073Question: Case Study – Bethesda Mining Company Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the spot market.
WhatsApp: +86 18221755073Bethesda Mining Company Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia, and Kentucky. ... Let's start by calculating each of these metrics: 1. **Payback Period (PP):** The payback period is the time it takes for the initial investment to be recovered. It's the point in time when the ...
WhatsApp: +86 18221755073Mini Case Study-Bethesda Mining Essay examples. March 24, 2011 The following Mini-Case on Bethesda Mining Company was taken from the text corporate finance (2010, P. 203-204). In …
WhatsApp: +86 18221755073Question: Review the Closing Case in Chapter 8: Bethesda Mining Company. You have been asked by the president of the company to analyze the project. In Microsoft Excel, use the information provided in the case and calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine.
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