Mr. Arya wants to know the amount he should pay for a gold mine expected to yield an annual return of ₹ 4 lakh for the next 10 years, after which it…

Mr. Arya wants to know the amount he should pay for a gold mine expected to yield an annual return of ₹ $\displaystyle 4$ lakh for the next $\displaystyle 10$ years, after which it will be worthless. Find the amount he should pay for the mine, if he wants to yield $\displaystyle 18$% annual return on his investment and also set up a sinking fund to replace the purchase price. Assume that the sinking fund earns $\displaystyle 10$% annually. [Use $\displaystyle (1.1)^{10}=2.5937$]