Answer: -$66,667
Explanation:
As this project is expected to yield returns forever, it is a perpetuity.
The Present Value is calculated as;
= Payment per year / (Yield - growth rate)
Mine will decline at 8% per year however so this will need to be accounted for;
= 15,000/ ( 10% - (-8%))
= $83,333.33
The Net Present Value is;
= Present value of cash inflows - Initial investment
= 83,333.33 - 150,000
= -$66,666.67
= -$66,667
