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Ten hectares of timberland will yield an annual profit of 1,000,000P for 10 years, after which the timber will be exhausted. The land can be

Ten hectares of timberland will yield an annual profit of 1,000,000P for 10 years, after which the timber will be exhausted. The land can be sold for 12,000P per hectare. If the prospective buyer wishes to earn 15% on his investment and can deposit money in a sinking fund at 8%, determine the maximum price he could pay for the timberland.

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