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You Inherited an Oil Well That Will Pay You $26,000

Question 136

Multiple Choice

You inherited an oil well that will pay you $26,000 per year for 25 years,with the first payment being made today.If you think a fair return on the well is 7.5%,how much should you ask for it if you decide to sell it?


A) $352,059.56
B) $295,979.28
C) $320,903.85
D) $311,557.14
E) $339,597.28

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