Dwarves, Inc. has opened a new mine to extract the elusive and valuable mineral mitral. For the first year (t-), the Dwarves expects real cash flows of $38. Because the Dwarves will exhaust the...

Dwarves, Inc. has opened a new mine to extract the elusive and valuable mineral mitral. For the first year (t-), the Dwarves expects real cash flows of $38. Because the Dwarves will exhaust the mineral over time, it expects real cash flows to decrease at 2.5% per year in perpetuity. The real required return is 5% and the nominal required return is 10%. What is the value of the new mine?