Problemyou have the opportunity to purchase mineral rights, Ask an Expert

Accounting

Problem:

You have the opportunity to purchase mineral rights to a property in North Dakota with expected annual cash flows of $10,000 per year for eight years.

Required:

Question: If you discount these cash flows at a rate of 12% per year, what are these cash flows worth today if the cash flows occur at the end of each period?

Select one:

a. $49,676.40

b. $80,000.00

c. $122,996.93

d. $55,637.57

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169411

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