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Question
The current price per ton of iron ore is $145.00. The effective lease rate is 3.0% and the risk free rate is 4.5%. The cost to mine one ton of iron ore is $110.00 and constant. What is the trigger price at which we will mine the iron ore?A) $163.80
B) $180.40
C) $210.50
D) $205.70
Answer
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Related questions
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