10 - Suppose you wish to purchase a mine that will yield an annual return of $32,000 for 12 years, after which the mine will have no value. You want to earn 8% annually on this investment and also set up a sinking fund to replace the purchase price. If money is placed in the fund at the end of each year and earns 6.2% compounded annually, how much should you pay for the mine? a) $230,900 b) $231,100 c) $240,500 d) $240,900 e) $240,100