Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 9A90BC02
Simplified Chinese language
Published by: Ivey Publishing
Originally published in: 1990
Version: 1992-01-30
Length: 10 pages
Data source: Published sources

Abstract

This is the simplified Chinese version of ''9A90B002''. Minnova Lac Shortt mine faces an important capital budgeting decision. A discounted cashflow analysis of a $19 million investment to deepen the existing mine by 300 metres is required. Given the high levels of uncertainty and flux in the external environment (eg, US exchange rate, price of gold, head grade of ore, recovery percentage, etc), managers need to conduct a sensitivity analysis. Qualitatively, Minnova''s mining strategy weighs heavily on the decision because the quantitative analysis results in a slightly negative net present value.
Location:
Industry:
Size:
Large

About

Abstract

This is the simplified Chinese version of ''9A90B002''. Minnova Lac Shortt mine faces an important capital budgeting decision. A discounted cashflow analysis of a $19 million investment to deepen the existing mine by 300 metres is required. Given the high levels of uncertainty and flux in the external environment (eg, US exchange rate, price of gold, head grade of ore, recovery percentage, etc), managers need to conduct a sensitivity analysis. Qualitatively, Minnova''s mining strategy weighs heavily on the decision because the quantitative analysis results in a slightly negative net present value.

Settings

Location:
Industry:
Size:
Large

Related