You Are Thinking About Investing in a Mine That Will

question 17

Multiple Choice

You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year.As the ore closest to the surface is removed it will become more difficult to extract the ore.Therefore,the value of the ore that you mine will decline at a rate of 8% per year forever.If the appropriate interest rate is 6%,then the value of this mining operation is closest to:

• A)$71,429
• B)$500,000
• C)$166,667
• D)$41,667
• E)This problem cannot be solved.

---

Definitions:

Lewin

A reference to Kurt Lewin, a pioneering psychologist known for his work in group dynamics, organizational development, and social change.

Racism

The belief in the superiority of one race over another, which often results in discrimination and prejudice towards people based on their race or ethnicity.

Community Psychology

A systems approach to psychological intervention that focuses on addressing issues of social injustice and power differentials in society, community development and empowerment, and clients strengths as opposed to symptomatology.

Interventions

Actions or processes of intervening, typically aimed at improving a situation or condition, often used in medical, educational, or social contexts.