A piece of land may be bought for $700,000 to be strip-mined for coal. Annual net income will be $300,000 a year for 10 years. At the end of the 10 years, the surface of the land will be restored as required by a federal law on strip mining. The reclamation will cost $1,500,000 more than the resale value of the land after it is restored. Using a 10% interest rate compounded quarterly, find the present worth of this project (Don't use the $ sign in your answer)

Answer rating: 100% (QA)

To find the present worth of the strip mining projectwell consider the following factors Initial cos... View the full answer