payback period bethesda mining

Solved Bethesda Mining is a midsized coal …

Bethesda 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 …

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Bethesda Mining Company

The Payback Period The payback period method calculates the time it takes for a project to "pay back" its initial investment. The period is usually reflected in terms of number of years. Management sets the minimum acceptance criteria for how long it feels appropriate for the project to take before it starts paying for itself.

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Answered: Bethesda Mining is a midsized coal… | bartleby

Bethesda 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 ...

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Chapter 6 Mini Cases

Enhanced Document Preview: Bethseda Mining Company Answers. NPV = IRR = MIRR = Payback Period (in years)= Profitability Index= Should Bethesda take on the project? Part 1. Input Data (in thousands of …

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Bethesda Mining Company | PDF | Internal Rate Of …

The document analyzes the financial viability of Bethesda Mining Company opening a new strip mine location. It calculates the project's payback period, profitability index, net present value (NPV), and …

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Assignment on mine project

mine project analysis problem set bethesda mining company: new strip mine project analysis bethesda mining company is coal mining company that operates in west. Skip to document. University; High School. ...

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Solved Bethesda Mining is a midsized coal mining company

Assume 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.

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Solved BETHESDA MINING COMPANY Bethesda Mining is a midsized

Assume that 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?

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Solved Case Study – Bethesda Mining Company Bethesda …

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 …

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Solved Case Study – Bethesda Mining Company Bethesda …

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? 1.

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BETHESDA MINING COMPANY Bethesda Mining is a midsized coal mining...

Payback 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.

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Final Bethesda Mining Company 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? Data collect Contract product per year in ton 500,000 Production Year 1in ton 620,000 Year 2 in ton 680,000 Year 3 in ton 730,000 Year 4 in ton 590,000

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Ch8 Bethesda Mining Comapny

Bethesda Mining Company To be able to analyze the project, we need to calculate the project's NPV, IRR, MIRR, 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.

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Bethesda- Mining- Company

Case 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 ...

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Chapter 8 Case Study Bethesda Mining Co Proforma

CHAPTER 8B BETHESDA MINING COMPANY 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. So, we will begin by calculating sales. Each year, the company will sell x tons under contract, and the rest …

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bethesda mini case.doc

Executive Summary Date: 9/14/16 To: Dr. North From: Brian Mansfield Subject: Mini Case-Bethesda Mining Company Attachments 1-4: Attachment 1 shows the NPV to be $818,078, the IRR 12%, the MIRR 7%, the payback period to be 3.35 years, the discounted payback period to be 3.92 years, and the profitability index to be 1.01. …

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Assignment on mine project

The payback period is the time it takes for the initial investment to be recovered. It is calculated by dividing the initial investment by the annual cash inflow.

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Cash Flow Analysis

Financial 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: …

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Solved Bethesda Mining is a midsized coal mining company …

Bethesda Mining feels that call production will be 540,000 tons, 620,000 tons, 680,000 tons, and 620,000 tons, respectively, over the next four years. The excess production will be sold in the spot market at an average of $60 per ton. ... Calculate the payback period, profitability index, net present value and internal rate of return for the ...

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Bethesda Chapter 8 Case

BETHESDA MINING COMPANY Bethesda Mining is trying to determine whether or not it should accept a contract to open a new mine in order to be able to provide coal for Mid-Ohio Electric Company. They want to analyze the project to determine whether or not they should open the new mine. They want to find the payback period, profitably index, net …

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Bethesda Mining is a midsized coal mining company with …

Using a financial calculator; the calculations for the Bethesda Mining Company project are as follows: Net Present Value (NPV): $20,162,317.81 Internal Rate of Return (IRR): 19.30% Profitability Index (PI): 1.192 Payback Period: 4 years These metrics indicate that the project is financially viable.

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Payback Period Bethesda Mining

Bethesda Mining Company Group 3 Purpose: Calculate the project's Payback Period, Profitability Index, NPV, Solved Bethesda Mining is a midsized coal mining company … Bethesda Mining feels that call production will be 540,000 tons, 620,000 tons, 680,000 tons, and 620,000 tons, respectively, over the next four years.

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Payback Period: Definition, Formula, and Calculation

The payback period refers to the amount of time it takes to recover the cost of an investment or how long it takes for an investor to hit breakeven.

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Solved Please use Excel to solve the assignment and submit

Bethesda Mining feels that call production will be 530,000 tons, 630,000 tons, 700,000 tons, and 630,000 tons, respectively, over the next four years. The excess production will be sold in the spot market at an average of $45 per ton. ... Calculate the payback period, profitability index, net present value and internal rate of return for the ...

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(Solved)

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 cumulative cash …

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Solved Analyze the project and calculate the …

Analyze the project and calculate the payback period, profitability index, net present value and internal rate of return. Students need to answer if Bethesda Mining should take the contract and open the mine? Show …

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Bethesda Mining is a midsized coal mining company with …

It is not financially advisable for Bethesda Mining to accept the contract and start the new strip mine, according to the study of the payback time, profitability index, NPV, and IRR. In most commercial circumstances, it is unacceptable for a project to take over 15 years to return its original investment, given its negative net present value ...

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Bethesda and Goodweek Financial Management Cases

"Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine." (Ross, Westerfield, & Jaffe, 2013) Numbers given: PROPOSED CONTRACT: 4 years 500,000 tons of coal per year at $82 per ton PRODUCTION: Coal production would produce the following for 4 years, in order …

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CHAPTER 6, Case #1 BETHESDA MINING

CHAPTER 6, Case #1. BETHESDA MINING. To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up …

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Solved Case Study – Bethesda Mining Company Bethesda Mining …

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.

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