1. An investor expects to receive 750,000 from the sale of land five years from now. Based on a 10 percent discount rate, what is the land worth today?

If the land in the previous problem is rented to a farmer for the next five years at $25,000 per year, after which it will be sold for $750,000. Based on the same 10 percent discount rate, what is the value of the land today?

If the investor can actually purchase the land for $500,000, what is the NPV based on a 10 percent discount rate?