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A farmer sows a certain crop. It costs $220,000 ia buy the seed, propare the ground, and sow the crop. In one year's time it

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A farmer sows a certain crop. It costs $220,000 ia buy the seed, propare the ground, and sow the crop. In one year's time it will cost 5110.200 to harvest the crop. The tarmor's best estinate is that the crep wit be worth $350,000 in one year. The farmer can borrow and lend at an interest rale is 9% : Part A) The net present value (NPV) of the tarmer's docision to proceod weh this investment is dosent to which of the following? A. 5101,101 B. $200.000 C. 50 D. 5541,101 can lock ih a sale price of $375,000. for her havested crop in one yoar, thus eliminating any uncertainty. The cost of entering into this contract is $73, Soo, payablo foday. Shoudd the farmer enter into this foeward agreement and lock th the sale price of her harvested crop? A. Yes, she should onlor into this agreement B. No, she shoula nat ortor into this agreoment, Part C) What price would the lamer need to pay for the lorward ogreoment described in Part B such that the NPV of her overall farming investment would be unchanged trom that calculatod in Pair A? Price of forward contract esch that NPV is unchangod-1 (please round your answer to the nearest dollar)

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