Expected to yield an annual income

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Reference no: EM13930134

A bauxite mine is expected to yield an annual income of $90,000 for the next 26 years, after which it will be sold for $5850. An investor wants an annual return on his investment of 6%. If he can establish a sinking fund earning an annual interest rate of 3%, how much should he pay for the mine?

Reference no: EM13930134

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