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7. You are thinking about investing in a mine that will produce nothing in the first year and $15,000 worth of ore in the second

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7. You are thinking about investing in a mine that will produce nothing in the first year and $15,000 worth of ore in the second year. As the ore closest to the surface is removed it will become more difficult to extract the ore. Therefore, the value of the ore that you mine will decline at a rate of 3% per year forever. If the appropriate interest rate is 7% compounded annually, then the value of this mining operation is closest to

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