Chapter 5

Bullock Gold Mining

Input area:

Year Cash flow

0 $ (850,000,000)
1 $ 170,000,000
2 $ 190,000,000
3 $ 205,000,000
4 $ 265,000,000
5 $ 235,000,000
6 $ 170,000,000
7 $ 160,000,000
8 $ 105,000,000
9 $ (75,000,000)

Required return 12%

Output area:

Payback period 4.09

IRR 14.67% =IRR(D8:D17)

IRR -63.34% =IRR(D8:D17,-0.99)

MIRR 13.02% =MIRR(D8:D17,D19,D19)

Profitability index 1.09 =NPV(D19,D9:D17)/-D8

NPV $ 74,790,255.81 =NPV(D19,D9:D17)+D8

D8:D17,-0.99)

R(D8:D17,D19,D19)

(D19,D9:D17)/-D8

(D19,D9:D17)+D8