Group Case: Mayala's Farming Mayala, born and raised in BC, has been familiar with farming since childhood. Her grandparents owned a 5-acre piece of land in a farming town about an hour's drive away from the house she had lived in until age 21. As an only child, she often got a chance to stay with her grandparents for parts of the summer, when her parents travelled or wanted time to themselves. Mayala was always happy to help out on the farm and take some fresh food home for her parents. Mayala's grandpa, Rudy, recently passed away and the farm is too much for Grandma Lily to handle on her own. Hence, she has reached out to Mayala for help. Since Mayala currently works as a financial advisor, she is connected to many individuals who may be interested in investing in a farm. For this year, a neighbour, Tyler, has agreed to rent the farm as is and will attempt to earn a profit off the yield. For rent, he will be paying Lily a single payment of $10,000 on July 31. He isn't willing to commit on the same deal next year. Currently, the farm has raspberry plants which are nearing the end of their lives, with declining yields. Last year, the revenues amounted to $24,000, with farm-related expenses of $5,500. This year, Lily expects yields to decline 5%, with another decline of 5% anticipated for the year after. She expects that the plants would certainly need to be replaced at that point, as they would be 10 years old. Mayala is looking at options on what to do about the farm. She believes that the house and farm can sell for $800,000. However, it is the only home her grandma has ever known in Canada and believes it will be difficult to convince her to sell, even with a giant profit (it was purchased forty-five years ago for $11,000). By selling the farm, Lily would be able to buy a $650,000 townhouse in the city and invest the remaining money at a 4% rate. Another option is to find a long-term renter for the farmland. Lily believes that Tyler offered her a sweetheart deal out of friendship, but won't be interested in paying as much in the future when there are higher expenses (such as clearing land and replanting crops). She believes that it is possible to find someone who will pay $7,000 a year for the next five years for the farmland. She has Mayala to help her determine if this is a good option.