How much must be deposited now

Reference no: EM132160334

Question: An open-pit mine must fund an account now to pay for maintenance of a tailing pond in perpetuity (after the mine shuts down in 30 years). The costs until shutdown are part of the mine's operating costs. The maintenance costs begin in 30 years at $300,000 annually. How much must be deposited now if the fund will earn 5% interest?

Reference no: EM132160334

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