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Suppose you are considering investing in a strip-mine coal and you may have to invest large sums to reclaim the land after the coal is
Suppose you are considering investing in a strip-mine coal and you may have to invest large sums to reclaim the land after the coal is mined. Thus a new mine creates an initial investment (negative cash flow up front), a series of positive cash flows, and an ending cash outflow for reclamation. While evaluating a project like this which technique would be the most suitable? Which technique could mislead you? Motivate your answer with relevant theory, example, diagram and so forth.
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