Question
A salt mine you inherited will pay you $25,000 per year for 25 years, with the first payment being made today. If you think a
A salt mine you inherited will pay you $25,000 per year for 25 years, with the first payment being made today. If you think a fair return on the mine is 7.5%, how much should you ask for it if you decide to sell it?
| a. | $284,595 |
| b. | $299,574 |
| c. | $314,553 |
| d. | $330,281 |
| e. | $346,795 |
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Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 978-0138596873
