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A. 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
A. 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?
B. If the land in Sample Problem 8-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?
C. Refer to Sample Problem . If an investor can actually purchase the land for $500,000 what is the NPV based on a 10 percent discount rate?
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