Suppose that the price received for gold extracted from time (k) to (k+1) is the average of

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Suppose that the price received for gold extracted from time \(k\) to \(k+1\) is the average of the price of gold at these two times; that is, \(\left(g_{k}+g_{k+1}\right) / 2\).

However, costs are incurred at the beginning of the period whereas revenues are received at the end of the period. Find the value of the Complexico mine in this case.

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Investment Science

ISBN: 9780199740086

2nd Edition

Authors: David G. Luenberger

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