Green Mining Inc. is planning to acquire an iron ore mine from Mine Well Inc. in a year completed just now the mine produced $100,000$ MT of iron ore. The average realization based

on th$$ prevailing price is $$100$ per MT$.$ The annual production from the $$mine is expected to$.$

fall by $4\%$ per year due to depletion of reserves, however, the iron ore price is expected $10$

increase on an average by $3\%$ annually, What isthe maximum acquisition price Green mining

Should pay forthe mine given that they expect the mines useful life to be $25$ years and the required rate of return is$12\%?$