Explore BrainMass

Explore BrainMass

    Present Value of a gold mine

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he can set up a sinking fund that earns 10% a year?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:39 pm ad1c9bdddf
    https://brainmass.com/business/business-math/determining-present-value-gold-mine-4281

    Solution Preview

    Problem:
    How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants ...

    Solution Summary

    The solution calculates the present value of a gold mine.

    $2.49

    ADVERTISEMENT