180, 7 = 20; Q=90,00 5. ABC Co. is considering an investment in agricultural land in the Province of Alberta, The cost of the land is $2.0 million. The first vear operating cash flow is estimated at $120,000. The firm projects that this would grow by about 4% per year, on average, Tinto the indefinite future. The firm requires a 15% rate of return to cover its funding costs. Sum of, och a. In the space below, compute the net present value of this proposed Investment. (10 points) 3 MACRS (10w about 47 aug E1- 120,000 x Bm D 119) 37163 04.207 = 23261579.89 2.000.000 2 12615 19.59 b. In the space below, compute the annual growth rate in operating cash flow that would result in a net present value of zero, assuming a 15% required rate of retum. (10 points) um of 2, 00) { 11.04) 104 out of 11518662.95 about (141) c. At the growth rate computed in retum? (10 points). b., above, what is the investemnt's internal rate of