ou have been hired by a local drainage company to analyze the profitability of drain tile. They have rovided you with 160 acres that will be used as the test plot. It is estimated that adding drain tile wi ncrease operating receipts by $125/acre. The cost to nvestment period is 10 years and the drain tile can be rain rs e $50/acre. The marginal tax rate is 25%. You ca sk-free discount rate, 1.75% inflation rate (all operating receipts. re in real dollars), and 3.5% risk premium for this project. The local lender has agreed to provide specia nancing for these projects. The bank will finance the drain tile over 10 years at 6.875% with annua valu ayments. Analyze this investment. What is the NPV and IRR? Should the farmer invest in the drain tile a Previous Next orLk Pri 8 9 0 FGH ou have been hired by a local drainage company to analyze the profitability of drain tile. They have rovided you with 160 acres that will be used as the test plot. It is estimated that adding drain tile wi ncrease operating receipts by $125/acre. The cost to nvestment period is 10 years and the drain tile can be rain rs e $50/acre. The marginal tax rate is 25%. You ca sk-free discount rate, 1.75% inflation rate (all operating receipts. re in real dollars), and 3.5% risk premium for this project. The local lender has agreed to provide specia nancing for these projects. The bank will finance the drain tile over 10 years at 6.875% with annua valu ayments. Analyze this investment. What is the NPV and IRR? Should the farmer invest in the drain tile a Previous Next orLk Pri 8 9 0 FGH