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A pine plantation returns nothing to its owner in the first 3 years. In the following 2 years, the returns are $100,000 (year 4) and
A pine plantation returns nothing to its owner in the first 3 years. In the following 2 years, the returns are $100,000 (year 4) and $150,000 (year 5), respectively, and then the return is $200,000 per year perpetuity. The returns can be invested at 8% per annum. What is the present value to the owner (the value in year 0)?
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