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A copper mine is expected to yield an annual income of $120000 for the next 26 years, after which it will be sold for $4800.
A copper mine is expected to yield an annual income of $120000 for the next 26 years, after which it will be sold for $4800. An investor wants an annual return on his investment of 16%. If he can establish a sinking fund earning an annual interest rate of 8%, how much should he pay for the mine?
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