RE: Is this correct? Fatal flaw:
"Factor for a ten year loan at 10% is 0.16275, cost at 520 x 0.16275, or $84.63 million annually
Factor for a ten year loan at 7.0% is 0.14238, cost at 520 x 0.14238, or $74.04 million annually"
10% of 520 is 52.
7% of 720 is 36.4
And these are for the first year only. As principal is paid back your interests get lower.
member123,
I can't imagine Chandaga coal could be shipped anywhere. And I haven't seen company suggesting that either. Coal quality and location does not allow it.