CHAPTER 6, Case #1. BETHESDA MINING. To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales.

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Case Study Bethesda Mining - Free download as Excel Spreadsheet (.xls / .xlsx), PDF File (.pdf), Text File (.txt) or read online for free. Case Study Bethesda Mining ... Chapter 2 Solutions. Chapter 2 Solutions. Sorken75. Capital Budgeting Practice. Capital Budgeting Practice. Mira V. Potato Best. Potato Best. kornelus. CASHFLOW FIX.xlsx.

Project Details: 4 yr contract for 500,000 tons of coal per year @ $82 per ton. 4 yr production in tons: 620,000, 680,000, 730,000, 590,000. Fixed cost: $4.1 million per year. Variable cost: $31 per ton. NWC: 5 percent of sales.

BETHESDA MINING COMPANY. ... Taxes that year are a credit, an assumption given in the case. In Year 6, the charitable donation of the land is an expense, again resulting in a tax credit. The land does have an opportunity cost, but no information on the after-tax salvage value of the land is provided. The implicit assumption in this calculation ...

Bethesda Mining Company. This Mini Case is an adaptation of a case presented in the textbook Ross, S.A., R.W. Westerfield and J. Jaffe, Corporate Finance depreciated net present value and internal rate of return for the new strip mine. Should Bethesda Mining take the contract and open the mine?

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Land NWC –7,000,000 –2,915,000 Total –$94,915,000 Now we can calculate the OCF each year. The OCF is: Sales $58,300,000 $63,700,000 $68,200,000 $55,600,000 VC FC Dep. EBT Tax 19,220,000 4,300,000 8,597,500 21,080,000 4,300,000

Chapter 6. Bethesda Mining. Input area: Equipment. Land cost. Aftertax land value. Contract sales/tons. Year 1 production. Year 2 production.

Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ia and Kentucky. This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. See Answer Question: Please use Excel to solve the assignment and submit as an excel …