2.5 A small-scale silver mine in north Idaho is for sale. A mining engineer estimates that at...

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2.5 A small-scale silver mine in north Idaho is for sale. A mining engineer estimates that at current production levels, the mine will yield an annual net income of $80,000 for 15 years, after which the silver will be exhausted. If an investor’s required rate of return is 15% compounded annually, what is the maximum amount that the investor can bid on this property?

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