A certain marble mine property has an estimated life of 30 years at a projected annual output of 3,000 cubic meters of marble blocks. Estimated management cost per year is placed at 1,500,000 and operating cost of the quarry and processing plant is P8,000 per cubic meter. The finished products tiles and slates can be sold for P12,000 per cubic meter if exported. Determine the present valuation of the mineral property if the sinking fund rate of interest is 15% and the annual dividend rate is to be 12%.

A certain marble mine property has an estimated life of 30 years at a projected annual output of 3,000 cubic meters of marble blocks. Estimated management cost per year is placed at 1,500,000 and operating cost of the quarry and processing plant is P8,000 per cubic meter. The finished products tiles and slates can be sold for P12,000 per cubic meter if exported. Determine the present valuation of the mineral property if the sinking fund rate of interest is 15% and the annual dividend rate is to be 12%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 17P

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