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Nancy is considering buying 200 acres of land for $2,000,000, she expects to lease the land to a farmer which will result in profits of
Nancy is considering buying 200 acres of land for $2,000,000, she expects to lease the land to a farmer which will result in profits of $75,000 in the first year, $500,000 for the next two years, and $550,000 in years 4 through 7. What is the discounted payback period on the land if Nancys required rate of return is 12%?
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