Pay for maintenance of trailing pond

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Reference no: EM131902266

An open-pit mining company must fund an account now to pay for maintenance of a trailing pond in perpetuity after a mining site is shut down in 20 years. The costs until shutdown are part of the mines operating costs. The maintenance costs begin in 20 years at $200,000 annually. How much must be deposited now if the fund will earn 7% interest?

Reference no: EM131902266

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