Suppose the Current Price of Gold Is $650 Per Ounce

question 1

Multiple Choice

Suppose the current price of gold is $650 per ounce. The price of gold is expected to grow at 5 % per year for foreseeable future. If the appropriate discount rate is 8%, the present value of gold is:

• A) Less than $650 per ounce
• B) Greater than $650 per ounce
• C) $650 per ounce
• D) None of the above

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