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ivanhoe company is considering buying a new farm that it plans to operate for 1 0 years. the farm will require an initial investment of
ivanhoe company is considering buying a new farm that it plans to operate for years. the farm will require an initial investment of million. this investment will consist of $ million for land and $ million for trucks and other equipment. the land, all trucks, and all other equipment are expected to be sold at the end of years for a price of $ million, which is $ million above book value. The farm is expected to produce a revenue of $ million each year, and annual cash flow from operations equals $ million. The marginal tax rate is percent, and the appropriate discoint rate is percent. Calculate the NPV of this investment.
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