Bethesda Mining Capital Budgeting Fin 600 Case

405 words - 2 pages

BM
overview
· There has been an increased demand for coal and so, market demand has increased for high sulfur coal.
· Bethesda Mining Company has the option to either mine the land which they own for the next four years on contract or to sell it.
· If land is sold, they anticipate to receive 7.3 million after-tax.
bethesda mining co.
fact sheet
initial costs/salvage value of equipment
· bethesda will need to purchase additional equipment to mine the land - $49,000,000
· the company feels that equipment can be sold for 60% of its initial price
· salvage value of equipment = market value – book value * tax on salvage.
· [(49M*.60) - ($49M-32,971,000)] * (.38) = $24,037,706.00
· if land is sold they anticipate to receive $7.3 million on after-tax basis.
project cash flows
The computation of the project cash flows are reflected in the table below.
capital budgeting methods
· Analysis and Recommendations: The project should be accepted as it has a payback period that is less than the length of the project (four years). The profitability index is greater than 1 meaning that they will make 0.31 cents on each dollar they put into the...

Other Essays On Bethesda Mining Capital Budgeting - FIN 600 - Case

This essay is about how anger affects society - English - Essay

5749 words - 23 pages 30, 20— Assets Liabilities Cash $25,500 Accounts payable $ 4,150 Accounts receivable 9,780 Supplies 600 Stockholders’ Equity Capital stock $ 10,000 Retained earnings 21,730** 31,730 Total liabilities and Total assets $35,880 stockholders’ equity $ 35,880 **$21,730 = – $4,150 + $9,780 + $25,500 + $600 – $10,000 b. Retained earnings, September 30 $21,730 Retained earnings, August 31 10,400 Net income $11,330 c. Retained earnings, September 30

On The Negative Effects of Natural Resource Extraction due to Globalization - McGill INTD 200 - Essay

2521 words - 11 pages popularity around privatization and infusing capital into global South economies allowed for mining companies to make their way into countries under the guise of helping rather than hindering, giving them essentially unlimited access to the economies and natural resources of developing countries[footnoteRef:20]. Because resource extraction started off simply with the idea of profit maximization, it left indigenous populations and their rights far

Case Studies under the Constitution - ASU\Spiff - Assignment

3663 words - 15 pages 1 Running head: LSU BUDGETING CRISIS [Type text] [Type text] [Type text] 6 LSU BUDGETING CRISIS A Budgeting Crisis at Little State University Alex Breitling, Lindsey Harrison, Matt Hartigan, and Rodney Thrift Troy University Summary This case study is about Little State University (LSU) a small Division I school competing in the National Collegiate Athletic Association (NCAA) in the Football Championship Series (FCS). LSU has 20 varsity sports

Role of the budget for Nairobi African Market, a local business in Moline Illinois - Liberty University BUSI730 - Assignment

1745 words - 7 pages the business goals and can be useful for the next year in determining the strategic allocation of financial resources, and the effects on the capital budgeting decisions. This document will discuss, Nairobi African Market, a small grocery business in Moline, Illinois, how the allocation of finances improved the customer flow, what areas needed more financing and areas that needed the financial budget reduced. As the business is small, the budget

This Assignment is a case study for a professional financial management class - Missouri State/ FIN 581 - Assignment Case

768 words - 4 pages FIN 581 Williams Case April 3, 2019 Strengths: - Williams’ came to you for advice on how to achieve their financial goals - Michael has a stable job, and a long future earning period - Michelle is self-employed and generating business - Michael’s parents are doing well and help them financially - They Williams’ have adequate homeowners and automobile insurance coverages - Joan would like to assist in the educational and maintenance needs of

Mining In Ecuador

5841 words - 24 pages also belong to Ecuador. About half the people live in the valleys and on the plateaus of the Andes. Quito, the capital of Ecuador lies on an Andean plateau and was the first town found by the Spaniards in South America in 1534. Spanish is the official language, and more than 90% of the population belongs to the Roman Catholic Church. The Ecuadorian government requires all children from 6 to 14 years old to go to school.Ecuador's economy is

history 7a united states pre 1877 - History 7a - essay

3647 words - 15 pages Chinese made up a significant portion of the population in the gold mines in California at an upward percentage of 25 percent. “Chinese gold miners were upward of 25 percent of the mining populations in California and Victoria, Australia, in the 1850s and 1860s, but they remain marginal gures in most historical accounts of the gold rushes and gold mining. When they do appear they are noted as objects of Euro-American racism and xenophobia but not as

business tax for business purposes - tafe - assignment

2022 words - 9 pages . Application In the case of a capital gain, if the asset takes place for more than 12 months (Section 160ZH), the base cost of the asset is indexed under the direction of the TFE. Calculate any capital losses of any indexing, but it can reduce the cost compared to the article 160ZK. Conclusion According to the above clause: 1. Cost of moving assets is not an allowable tax deduction. 2. Revaluing assets do not qualify for an allowable deduction. 3. Any

Effects of immigration on the US economy - English 1010 - Essay

821 words - 4 pages Amadeo, “29% of immigrants have a college degree. But that is similar to the 30% of native-born counterparts… In 1970, only 12% of immigrants had a graduate degree”. This means native Americans would not have to compete with immigrants for white collar jobs as many immigrants do not have degrees. This is mostly the case with illegal immigrants. To conclude, native Americans do not have to worry about jobs, as illegal immigrants hardly have any

foreign direct Investment on infrastructure within developing countries. - economics - essay

1307 words - 6 pages on infrastructure within developing countries. Before China became a key player in todays society with the ability now to invest in a number of different economies the country itself started off bleak and it was not until the early 2000’s when China over took the US in terms of foreign capital as China’s key attributes of infrastructure, the availability of both physical and labour resources and the low transaction cost attracted outsider’s to

Acrylic Acid Plant

2524 words - 11 pages kg acrylic acid in crude product (6) where CAP is the installed capital cost for the entire feed and reaction sections, including the feed tanks. 6 Figure 3: Compressor Curves for C-301 10-3 volumetric flowrate (m3/h) 0 10 20 30 40 50 60 70 P o u t/ P in 0 1 2 3 4 5 6 3500 rpm 2200 rpm 7 Figure 4: Pump Curve for the Dowtherm A Pump Flow of Dowtherm A (m3/h) 0 200 400 600 800 1000 1200 T o ta l D y n a m ic H e a d ( m ) 0 5 10 15 20 25 30 8 9

Similar Papers

Feasibility Study Essay

2041 words - 9 pages by all positive inflows. In other situations the IRR may not rank mutually exclusive assets properly, or may have zero or many solutions.C 15/1: Economic Feasibility Studies Capital Budgeting Techniques Pathways to Higher Education 23 The Notion of Certainty Summary Case Accounting Rate of Return allows many valuations of the asset base, does not account for the time value of money, and does not relate to the firm's goal. It is not a recommended

In Practice, Do You Think Your Firm Should Go To The Time And Expense Of Implementing A Capital Budgeting System Into The Planning Process?

1044 words - 5 pages "Capital budgeting ~ the process of analysing potential fixed asset investments. Capital budget decisions ~ probably the most important ones financial managers must take." (1)"Financial and budgetary accounting are branches of the same discipline, but they have fundamentally different purposes. Financial accounting looks backward in time: it summarizes economic performance for a past period. Budgetary accounting, by contrast, looks forward: it

Final Exam For Gust Students Spring Gust Finance 301 Exam

2105 words - 9 pages ) Restructuring debt B) Ratio analysis C) Recapitalizing assets D) Capital budgeting 2) Fixed assets that provide the basis for the firm's profit and value are often called A) non-current assets. B) book assets. C) tangible assets. D) earning assets. 3) The final step in the capital budgeting process is A) re-evaluation. B) implementation. C) follow-up. D) education. 4) A $60,000 outlay for a new machine with a usable life of 15

Real State Secondary Market Essay

6480 words - 26 pages propietaria de diez o más activos, una estrategia de inversión de bienes raíces por lo general secundaria ofrece a los inversores una mayor diversificación de la propiedad de cientos de activos. Dado que usted está comprando en una etapa posterior, los inversionistas tendrán menos riesgo de duración como capital y las ganancias serán devueltos antes de lo que si se invierte en una piscina ciego al