What rate of return would investment produce for purchaser

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A mine is for sale for $240,000. It is believed the mine will produce a profit of $65000 the first year, but the profit will decline $5000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return would this $240,000 investment produce for the purchaser of the mine?

Reference no: EM13212945

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