What is difference between private ownership and open access

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1. Suppose you are considering buying a gold deposit. It will cost $1 million per year to construct a mine so that gold can be extracted. The construction period lasts 3 years. In the fourth year, production starts. Each year the mine operates, it will yield a profit (total revenue minus total cost) of $500,000. Costs are paid and profits are received at the beginning of the respective year. What will you pay for the gold deposit if: a. Interest rates are 10% and gold can be extracted for 6 years? b. Interest rates are 5% and gold can be extracted for 10 years? 2. What is the difference between private ownership and open access?

2. What is the difference between private ownership and open access?

Reference no: EM131099010

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