Question
Permanent mineral rights on a parcel of land are purchased for an initial lump-sum payment of $100,000. Profits from mining activities are $12,000 each
Permanent mineral rights on a parcel of land are purchased for an initial lump-sum payment of $100,000. Profits from mining activities are $12,000 each year, and these profits are expected to continue indefinitely. The interest rate earned on the initial investment is most nearly (A) 8.3% (B) 9.0% (C) 10% (D) 12%
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Intermediate Accounting
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