It is estimated that a mineral deposit will produce


It is estimated that a mineral deposit will produce 27,000ton in the coming year and 34,300ton in the subsequent year. It is expected that for the first 12 years the production patter will be of the type V.e^α.k and that for the following 8 years the production will be stable at the same rate as on the twelfth year. What is the present value of future profit from this deposit for i = 0.10 if it is assumed that profit per ton after mining expenses will be $5 for the first 8 years and $7 for the remaining 12 years.

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Econometrics: It is estimated that a mineral deposit will produce
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