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A gold mine was purchased for $10 million. It has an anticipated gross income of $8.0 million per year for years 1 to 5 and

A gold mine was purchased for $10 million. It has an anticipated gross income of $8.0 million per year for years 1 to 5 and $5.0 million per year after year 5. Assume that depletion charges do not exceed 50% of taxable income. Compute the annual depletion amount and determine how long it will take to recover the initial investment.

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