{"id":127846,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/you-are-examining-the-financial-viability-of-investing-in-some-abandoned-copper-mines-in-chile-which-still-have-significant-copper-deposits"},"modified":"2017-08-16T06:23:00","modified_gmt":"2017-08-16T06:23:00","slug":"you-are-examining-the-financial-viability-of-investing-in-some-abandoned-copper-mines-in-chile-which-still-have-significant-copper-deposits","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/you-are-examining-the-financial-viability-of-investing-in-some-abandoned-copper-mines-in-chile-which-still-have-significant-copper-deposits\/","title":{"rendered":"You are examining the financial viability of investing in some abandoned copper mines in Chile, which still have significant copper deposits"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p>You are examining the financial viability of investing in some abandoned copper mines in Chile, which still have significant copper deposits. A geologist survey suggests that there might still be 10 million pounds of copper in the mines and the cost of opening up the mines will be $2 million. The Chilean government is willing to grant a 25-year lease on the mine. At the current copper price, the present value of the net cash flows from this mine is $1.8m. However, the annualized standard deviation in copper prices is 25%, and the risk free rate is 7%. Estimate the value of right to the mine based on an option-pricing model.<\/p>\n<p>Please help me understand this with detailed calculations and if its done on Excel, a copy of it would be great.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>You are examining the financial viability of investing in some abandoned copper mines in Chile, which still have significant copper deposits. A geologist survey suggests that there might still be 10 million pounds of copper in the mines and the <a href=\"https:\/\/www.benedictsol.com\/blogs\/you-are-examining-the-financial-viability-of-investing-in-some-abandoned-copper-mines-in-chile-which-still-have-significant-copper-deposits\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-127846","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/127846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=127846"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/127846\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=127846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=127846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=127846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}