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How much should be paid for land containing an oil well that is estimated to produce for 15 years and have an annual income of
How much should be paid for land containing an oil well that is estimated to produce for 15 years and have an annual income of $100,000? The prospective buyers wish to earn 15% on their investment, and they can set up a depletion reserve earning 10.5%. The value of the land, once the oil has all been depleted, will be $15,000
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