Question: 8 . Determine the capital value ( i . e . , purchase price ) of an investment in mining that is expected to provide

8. Determine the capital value (i.e., purchase price) of an investment in mining that is expected to provide a net annual income of $133,000 for 13 years and the have no income or residual value. This investment is expected to yield 14% compounded annually, and a depletion reserve earning 10.5% annually can be set up.(6 marks)

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