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The market price of gold is $400 per ounce. The price of gold is expected to grow at 4% per year for the foreseeable

The market price of gold is $400 per ounce. The price of gold is expected to grow at 4% per year for the foreseeable future. If the appropriate discount rate is 6%, what is the present value of one ounce of gold produced in one year? [3 marks] Explain why? [3 marks]

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