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Question 1 The market price of gold is $600 per ounce. The price of gold is expected to grow at 5% per year for the

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Question 1 The market price of gold is $600 per ounce. The price of gold is expected to grow at 5% per year for the next four years. The appropriate discount rate is 8%, What is the present value of one ounce of gold produced in two years? [3 marks] Explain why? [3 marks]

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