Carla Vista company is considering buying a new farm that it plans to operate for 10 years the farm will require an initial investment of 11.80 million this investment consist of 2.05 million trillion in 9.75 million for trucks and other equipment

The land, all trucks and all other equipment are expected to be sold at the end of 10 years for a price of 5.30 million which is 2.30 million above book value the farm is expected to produce revenue of 2.10 million each year in annual cash flow from operations equals 1.90 million the marginal tax rate is 25% and the appropriate discount rate is 10% calculate the NPV of this investment

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