The Keiser Mining Company must deposit money in an account TODAY (n=0) to cover the anticipated cleanup costs that will begin when the mine closes. These cleanup costs of $6000 will begin in year 5 and repeat every 2 years, as shown below. The account will pay 5% annual interest. $6 $6 $in thousands $6 11111 - 11 12

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Problem 13
The Keiser Mining Company must deposit money in an account TODAY (n=0) to cover the anticipated cleanup
costs that will begin when the mine closes. These cleanup costs of $6000 will begin in year 5 and repeat every
2 years, as shown below. The account will pay 5% annual interest.
$6
$6
$6
$in
thousands
of
5
-
ST
10
11
=
The amount Keiser Mining Company should deposit TODAY is closest to:
a. $45,900
b. $48,200
c. $50,600
d. $58,500
Transcribed Image Text:Problem 13 The Keiser Mining Company must deposit money in an account TODAY (n=0) to cover the anticipated cleanup costs that will begin when the mine closes. These cleanup costs of $6000 will begin in year 5 and repeat every 2 years, as shown below. The account will pay 5% annual interest. $6 $6 $6 $in thousands of 5 - ST 10 11 = The amount Keiser Mining Company should deposit TODAY is closest to: a. $45,900 b. $48,200 c. $50,600 d. $58,500
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