FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor pays $430,000 for a mine that will produce level annual revenue for 25 years. What should the level annual revenue be (received at

An investor pays $430,000 for a mine that will produce level annual revenue for 25 years. What should the level annual revenue be (received at the end of each year) if the investor is to receive 5.5% annual return on the investment while recovering the principal in a sinking fund earning 4% per year?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Macroeconomics

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

6th Canadian Edition

321675606, 978-0321675606

More Books

Students also viewed these Economics questions

Question

★★★★★
The Overseas Corporation has taxable income of $250,000 before either a deduction for foreign taxes paid or the foreign tax credit. It paid foreign taxes of $75,000 on foreign income of $300,000....

Answered: 1 week ago

Question

★★★★★
Which is not an ethical obligation of a statistician? Explain. a. To know and follow accepted procedures. b. To ensure data integrity and accurate calculations. c. To support client wishes in drawing...

Answered: 1 week ago

Question

★★★★★
What training is required for the position?

Answered: 1 week ago

Question

★★★★★
Prepare the statement of retained earnings for Damon Design Studio for the year ending December 31, 2018. The assets, liabilities, and equities of Damon Design Studio have the following balances at...

Answered: 1 week ago

Question

★★★★★
The last two parts are asking for years 2016 and 2015. Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years...

Answered: 1 week ago

Question

★★★★★
FINA 2 4 8 Case Study Assume the Year is 2 0 1 9 Mary and Susan are a married same sex couple. They have been married for 2 5 years and own their own home. Their home is valued at $ 8 5 0 , 0 0 0 and...

Answered: 1 week ago

Question

★★★★★
Problem 3. Consider the following pseudo-code fragment. def stars (n): for i in [1:n]: print '*' i many times 123 a) Using the O-notation, upperbound the running time of STARS. b) Using the...

Answered: 1 week ago

Question

★★★★★
15. Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be...

Answered: 1 week ago

Question

★★★★★
All the answers, and please doble check before sending them to me. Thanks! Test: Week 3 Test ... Question 4 This Test: 100 pts possible Submit Test Listed below are actual high temperatures and the...

Answered: 1 week ago

Question

★★★★★
\fQuestion 6 The simple closedloop piping system depicted below is completely full of water. At which position (A or B} is the uid velocity greater? 0 Neither Q) A O B O Not enough information is...

Answered: 1 week ago

Question

★★★★★
c) Find the new stored energy. 4) Protons are released from rest in a Van de Graaff accelerating system. The protons initially are located where the electric potential has a value of 5.00 MV and then...

Answered: 1 week ago

Question

★★★★★
228 A new project will generate an annual cash flow of $50,000.00 forever. The project will require a $1,000,000.00 Investment today however. Based on these assumptions, what is the IRR of the...

Answered: 1 week ago

Question

★★★★★
1. To provide knowledge about various influencing techniques in communication situations.

Answered: 1 week ago

Question

★★★★★
1. Information that is currently accessible (recognition).

Answered: 1 week ago

Question

★★★★★
8. Based on the model in Fig. 10.2 in this chapter, analyse yourself and find out which cell you would place yourself in. Let another person in the group analyse you. Did he/she choose the same cell...

Answered: 1 week ago

Previous Question Next Question