What rate of return would be earned on the mine

Reference no: EM13690971

A mine is for sale for $450,000. It is believed the mine will produce a profit of $100,000 the first year, but the profit will decline $5000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return would be earned on the mine?

Reference no: EM13690971

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