Suppose the current price of gold is $650 per ounce.The price of gold is expected to grow at 5% per year for the 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) not enough information provided.
Correct Answer:
Verified
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