You own a gold mine. The value (net of all expenses) of the gold produced by this mine this year (Year 0) was $ 1,000,000. Unfortunately, the value of the gold removed from the mine is declining at the rate of 10% per year. Assume that you will keep the mine op en for 20 years and then close it down (at zero salvage costs). 

What is the present value of this mine today?

Answer rating: 100% (QA)

ANSWER To calculate the present value of the gold mine we need to discount the future cash flows fro... View the full answer