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HW-1175 Silver mine average cashflow
A silver mine can yield 10,000 ounces of silver at a variable cost of $32 per ounce. The fixed costs of operating the mine are $40,000 per year, silver can be sold for $48 per ounce; in the other years, silver can be sold for only $24 per ounce. Ignore taxes. (Part A) What is the average cash flow you will receive from the mine if it is always kept in operating and the silver always is sold in the year it is mined?
Answer will be sent by email as attachment.
Answer will be sent by email as attachment.
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