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You own a diamond mining company and are considering opening a new mine. The mine itself will cost $120 million to open. If this money

You own a diamond mining company and are considering opening a new mine. The mine itself will cost $120 million to open. If this money is spent immediately, the mine will generate $20 million for the next 10 years (beginning one year from the date of the investment). After that, the diamonds will run out and the site must be cleaned and maintained at an expected cost of $2 million per year in perpetuity starting in year 11. If the cost of capital is 8%, should you open the new mine?

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