You Have the Opportunity to Purchase Mineral Rights to a Property

question 91

Multiple Choice

You have the opportunity to purchase mineral rights to a property in North Dakota with expected annual cash flows of $10,000 per year for eight years.If you discount these cash flows at a rate of 12% per year,what are these cash flows worth today if the cash flows occur at the end of each period?

• A)$55,637.57
• B)$49,676.40
• C)$80,000.00
• D)$122,996.93

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Definitions:

Deception

The act of misleading or deceiving another party, often considered unethical or harmful in negotiation contexts.

Intentionally

An action done with purpose or deliberate intent, often implying a level of planning or forethought.

Ethical Standards

Guidelines or principles designed to govern behavior and decision-making in accordance with moral values and norms.

Truth Telling

The act of conveying information or facts in an honest and transparent manner.