If the mine is inexhaustible but can only extract 100


Now assume that you own this mine. If the mine is inexhaustible, but can only extract 100 ounces per week, and the production cost increases by 20% per year (starting at $400 next week, your first production period), how would you value this mine?

(Do not solve this algebraically. Just think about the concepts.)

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Financial Management: If the mine is inexhaustible but can only extract 100
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