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    Present Value of a gold mine

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    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?

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    https://brainmass.com/business/business-math/determining-present-value-gold-mine-4281

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    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

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