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A diamond mine is expected to yield an annual income of $110000 for the next 14 years, after which it will be sold for $2750.
A diamond mine is expected to yield an annual income of $110000 for the next 14 years, after which it will be sold for $2750. An investor wants an annual return on his investment of 6%. If he can establish a sinking fund earning an annual interest rate of 3%, how much should he pay for the mine?
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
78025745, 978-0078025747
