James is considering the purchase of 160 acres of land for $1,083.22 per acre. A bank will loan him $840 per acre of land and the loan will be fully amortized over 8 years at 13%. The outstanding balance of loan of the loan will be paid at the end of the third year. Assume that the marginal tax rate is 24%. Suppose that the following information is given: (Net cash flow on a per acre basis) Net Cash Flow before debt in Year 1=$126.00 Net Cash Flow before debt in Year 2=$125.00 Net Cash Flow before debt in Year 3=$1,168.00 (i) How much down payment is needed for the 160 acres? a. $29,575 b. $33,420 c. $38,915 d. $45,475 e. None of the answers are correct Enter Response Here: (ii) Calculate the amount of loan payment per acre per period. a. $175 b. $201 c. $133 d. $152 e. None of the answers are correct Enter Response Here (iii) Calculate the per acre tax savings from paying interest ling Year 2. a. $24 b. $13 c. $14 d. $14 e. None of the answers are correct (iv) How much money needs to be generated from other parts of the business to cover the cash deficit for the 160 acres in the 1st year, so the investment is financially feasible? a. $6,177 b. $4,154 c. $5,466 d. $3,492 e. None of the answers are correct Enter Response Here: (v) How much money needs to be generated in other parts of the business to cover the cash deficit for the 160 acres in the 2nd year, so that the investment is financially feasible? a. $6,164 b. $5,891 c. $3,977 d. $4,480 e. None of the answers are correct Enter Response Here