Question 4 Suppose 100,000 kilograms of gold can be obtained from a gold mine during its first year in operation. However, its subsequent yield is expected to decrease by 10% over the previous year's yield. The gold mine has a proven reserve of 1,000,000 kilograms. a) Suppose that the price of gold is expected to be $60 per gram for the next several years. What would be the present worth of the revenue earned at an interest rate of 12% per annum compounded annually over the next seven years? b) Suppose that the price of gold is expected to start at $60 per gram during the first year, but to increase at the rate of 5% over the previous year's price. What would be the present worth of the revenue earned at an interest rate of 12% per annum compounded annually over the next seven years? c) Consider part b again, find the net worth of the revenues to be earned in the next 4 years at the end of year 3. 1