A lumber company wants to purchase a tract of land which is estimated to produce $42,000 over operating costs over the next eight years, at which time it can be resold at one-fourth of the original cost. How much can the company pay for the land if it wants a return of 7% on the investment and can set up a sinking fun at 5.2% to cover capital cost?

I need step by step work and cannot use Excel or financial calculators.