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Business, 05.07.2019 23:10 lbab

Colorado mining, inc. and tanzania exploration, ltd. are separate firms that are both considering a new gold exploration project. colorado mining is in the actual gold mining business and has an after-tax cost of capital of 9.8 percent. tanzania exploration is in the precious gem retail business and has an after-tax cost of capital of 8.4 percent. the project under consideration has initial costs of $675,000 and anticipated annual cash inflows of $82,000 a year for ten years. which firm(s), if either, should accept this project?

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