Price that an investor is willing to pay for the mine

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Jhun Vert
Jhun Vert's picture
Price that an investor is willing to pay for the mine

The annual income from the mine is P100,000 and the life of the mine is 20 years. Find the price that an investor is willing to pay for the mine if he considers that money is worth 5% and if he is to accumulate a sinking fund at 6% in order to replace the capital he invested.

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