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Tangshan Mining Company is considering investing in a new mining project. The firm’s cost of capital...

Tangshan Mining Company is considering investing in a new mining project. The firm’s cost of capital is 38 percent and the project is expected to have an initial after-tax cost of AED 15,000,000. Furthermore, the project is expected to provide after-tax operating cash flow of AED 12,500,000 in year 1, AED 12,300,000 in year 2, AED 12,200,000 in year 3 and AED11,300,000 in year 4. Based on IRR should the firm accept or reject this project? Based on NVP should firm accept or reject this project?

Please use the excel sheet for calculations

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