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You own a gold mine. The value (net of all expenses) of the gold produced by this mine this year (Year 0) was $ 1,000,000.
You own a gold mine. The value (net of all expenses) of the gold produced by this mine this year (Year 0) was $ 1,000,000. Unfortunately, the value of the gold removed from the mine is declining at the rate of 10% per year. Assume that you will keep the mine op en for 20 years and then close it down (at zero salvage costs).
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ANSWER To calculate the present value of the gold mine we need to discount the future cash flows fro...
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
