Question
A mine is for sale. A mining engineer estimates that, at the current production levels, the mine will yield an annual net income of $100,000
A mine is for sale. A mining engineer estimates that, at the current production levels, the mine will yield an annual net income of $100,000 for 20 years, after which the mineral will be exhausted. If an investors minimum acceptable rate of return is 10%, what is the maximum amount that this engineer can bid on this property, to remain profitable?
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Financial Management For Nonprofit Organizations Policies And Practices
Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien
3rd Edition
1119382564, 9781119382560
