Vip Call US 📞 7738631006 ✅Call Girls In Sakinaka ( Mumbai )
Corporate Finance Case Study : Bullock Gold Mining
1. LOGO
LOGO
Bullock Gold Mining
Corporate Finance Case Study
Uun Ainurrofiq 1111200141
Yoong Khai Hung 1111200139
Khatereh Azarnoor 1101600315
Aliakbar Bahrpeyma1091200261
Jevgenijs Lesevs 1111200131
Shahin Firouztash 1111200070
2. Case Overview
Seth Bullock
(Owner)
Dan Dority
(Geologist)
Alma Garrett
(CFO)
Hi fellas..
we plan to work on a new Gold Mine
in South Dakota !!
Not Bad.. based on my estimation,
that site would be productive for
eight year sir..
Alright gentleman, Chill out..
I’ll do the financial analysis to help
you making a rational decision
13. MIRR
MIRR = 16.21 %
MIRR = 16.21 %
In PV table 0.2587 ► 16.21%
other method
14. Financial Decision
Decision
INVEST !!!
MIRR > R
16.21 %
NPV (+)
$ 171,141,294.31
1.The Payback Period is within the investment lifespan: Good
2.The Net Present Value has a Positive Value: Good
3.The MIRR is greater than the current cost of capital Good
Discounted Payback Period 4.35 ( < 8 Years)
19. Bonus Question
Seth Bullock
(Owner)
Most spreadsheets do not have
built-in formula to calculate the
payback period.
Write a VBA script that calculates
the payback period for a project !!
20. Bonus Question
Payback period = Amount invested ⁄ Expected annual cash inflow
*When the periodic cash inflows are unequal, “Net cash inflows”
have to be summed up until the amount invested in recovered.
21. VBA Script
Function PAYBACK(invest, finflow)
Dim x As Double, v As Double
Dim c As Integer, i As Integer
x = Abs(invest)
i = 1
c = finflow.Count
Do
x = x - v
v = finflow.Cells(i).Value
If x = v Then
PAYBACK = i
Exit Function
ElseIf x < v Then
P = i - 1
Z = x / v
PAYBACK = P + Z
Exit Function
End If
i = i + 1
Loop Until i > c
PAYBACK = "no payback"
End Function
invest and finflow get the values of Investment and Cash
inflow from Excel
Dim allocates space in the memory for created variable
Abs() function gets the absolute value of invest
variable i is to count the number of payback years
finflow.Count counts the number Cash inflows
Enter a loop that calculates the payback period
finflow.Cell get the amount of cash inflow in each cell in
the excel file, the value will be assign to variable v
22. VBA Script (cont’d)
Function PAYBACK(invest, finflow)
Dim x As Double, v As Double
Dim c As Integer, i As Integer
x = Abs(invest)
i = 1
c = finflow.Count
Do
x = x - v
v = finflow.Cells(i).Value
If x = v Then
PAYBACK = i
Exit Function
ElseIf x < v Then
P = i - 1
Z = x / v
PAYBACK = P + Z
Exit Function
End If
i = i + 1
Loop Until i > c
PAYBACK = "no payback"
End Function
if the invested value is equal to cash inflow value
then i = 1 will be returned as the number of payback years
if the invested amount is less than the cash inflows, then Formula 1
will be performed, this and the result will be returned as the
number payback years
this loop makes sure that all the Cash inflows have been considered
and summed up in the excel file.
If the amount invested is more than the Cash inflows (x > v) then
there will be no payback and the message will be returned to the
user
23. Company Cash Flow
Year Cash Flow
0 - $400,000,000
1 85,000,000
2 90,000,000
3 140,000,000
4 180,000,000
5 195,000,000
6 130,000,000
7 95,000,000
8 60,000,000
9 -95,000,000
The total investment and cash flows are as
follow: