Answer to Question #87262 in Finance for Fadhili

Question #87262
Suppose you have rights to gold mine for the next 20 years, during which you plan to extract 5000 kg every year. Assume a discount rate of 10%. The current price per kg is kshs.24, 000 but it’s expected to increase to 3% a year. Compute the present value of the gold.
1
Expert's answer
2019-04-03T09:04:11-0400

Present value of this annuity is:


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