Bethseda Mining Case Study
tons and 590,0000 tons 3. Fixed costs amounts to $4.1 million each year 4. The variable costs amount to $31 for every ton 5. Net working capital is 5 percent of the sales. This will be built up in the year before the sales 6. Spot sales of excess coal are $77 for every ton 7. Land: Purchase cost is $4 million. The land is held for ten years, after/tax sale currently $6.5 million 8. $2.7 million is necessitated for reclamation at year 5 9. Donation of land for $6 million deduction 10. Equipment cost of $95 million, 7 year MACRS depreciation 11. Equipment sale is at 60% of purchase price after completion of contract… Continue Reading...
