Chapter 6 Bethesda Mining Input area:
Equipment Land cost Aftertax land value Contract sales/tons ear ! production ear " production ear # production ear production Contract $/ton &pot mar'et $/ton (aria)le cost/ton ear ! depreciation ear " depreciation ear # depreciation ear depreciation ixed costs -eclamation costs C.arita)le expense C percent 1ax rate -equired return
$ $ $
85,000,000 6,000,000 7,000,000 500,000 6"0,000 680,000 7#0,000 5%0,000 $%5 $%0 $#! !*#0+ "*50+ !7*50+ !"*50+ $,#00,000 $",800,000 $7,500,000 5+ #8+ !"+
$
385,000,0004 37,000,0004 3",%!5,0004 3$%,%!5,0004
Output area:
1ime 0 cas. flo2 Equipment Land C 1otal &ales Contract &pot 1otal
Year 1
$ $
7,500,000 $ !0,800,000 58,#00,000 $
Year 2
7,500,000 !6,"00,000 6#,700,000
&ales (C C ep E1 1ax ep 9C
$
e:innin: C Endin: C C cas. flo2
$ $
",%!5,000 $ #,!85,000 3"70,00 3"70 ,0004 04 $
1otal cas. flo2
$
"5,%!",500 $
#!,6,%00
oo' value
$
7",85,000 $
5",0"0,000
$ $
5!,000,000 "6,5"0,000 3%,#0",004 !,6%7,600
&alva:e
$ $ $
58,#00,000 !%,""0,000 ,#00,000 !",!55,000 "",6"5,000 8,5%7,500 !,0"7,500 !",!55,000 "6,!8",500
;( ( 1axes
&alva:e C 1ime 0 ! " # 5 6
$
$ $ $
$
$
6#,700,000 "!,080,000 ,#00,000 "0,8"5,000 !7,%5,000 6,68,!00 !0,86,%00 "0,8"5,000 #!,67!,%00 #,!85,000 #,!0,000 3""5,00 3""5 ,0004 04
Cas. flo2 3%,%!5,0004 "5,%!",500 #!,6,%00 #!,86%,%00 68,%8!,#00 3!,7#6,0004 3,650,0004 1.1736 20.79% 19.01% -74.64% 14.93% 16,472,777.67
Year 3
$ $
7,500,000 $ "0,700,000 68,"00,000 $
Year 4
7,500,000 8,!00,000 55,600,000
Year 5
Year 6
$
$ $ $ $
68,"00,000 "",6#0,000 ,#00,000 !,875,000 "6,#%5,000 "6,#%5, 000 !0,0#0,!00 !0,0#0 ,!00 !6,#6,%00 !6,#6, %00 !,875,000 #!,"#%,%00 #!,"#%, %00
$
$ $ $
55,600,000 !8,"%0,000 ,#00,000 !0,6"5,000 "",#85,000 "",#85, 000 8,506,#00 8,506, #00 !#,878,700 !#,878, 700 !0,6"5,000 ",50#,700 ",50#, 700
$
",800,000 $
7,500,000
$
3",800,0004 $ 3",800,0004 3!,06,0004 3!,06, 0004 3!,7#6,0004 3!,7#6 ,0004 $ > 3!,7#6,0004 3!,7#6 ,0004 $
37,500,0004 37,500,0004 3",850,0004 3",850, 0004 3,650,0004 3,650, 0004 > 3,650,0004 3,650, 0004
$ $
",780,000
$
#,!0,000 $ ",780,000 6#0,000 $
$
#!,86%,%00 $
"7,"8#,700
$
#7,!5,000 $
"6,5"0,000 $
",780,000
>
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