Question

Production planning of a small quarry having 3 years of life is shown in the figure. The following information of revenue and cost data are available.Screenshot 2025-02-03 220210.png

Selling price of ore = Rs. 1500/tonne

Ore mining cost = Rs. 500/tonne

Waste mining cost = Rs. 500/m³

Initial capital = Rs. 1000 million

Discount rate = 10%

By neglecting depreciation, salvage value and corporate tax, the NPV of the mining project, in million Rs., is _______ [round off to 2 decimal places]

NAT

Min: 35.5 Max: 38.3

Answer: 36.9

Solutions
Add Solution

ETS

India's No. 1 test series for GATE Mining exam

Quick Links

© 2024-2025 examtestseries.com

All rights reserved.